Businesses must be aware of their responsibilities at the end of the financial year.
Careless mistakes in tax returns or simply being unorganised can see business owners lose out on significant tax savings, as well as finding themselves liable for penalties.
Avoid the following mistakes:
Super is payable 28 days after the end of the quarter. It is important to remember that to claim a deduction for the super contribution the employer must have made the contribution before June 30. Not paying super by the due date will also lead to a penalty imposed by the ATO.
Lodging group certificates
A common mistake made by business owners is issuing group certificates late and incorrectly reporting the figures. Employers are required to issue their payment summaries to their employees by 14 July and to the ATO by 14 August.
Small business benchmarks are financial ratios that have been developed by the ATO to help compare the performance of similar businesses in an industry. Businesses should take a look at their financials and review their management accounts before 30 June. They should be focusing on any unusual large amounts that have been reported as this could be an indicator of an accounting error or a more serious problem.