This is the time of year that the Australian Tax Office let us know which sectors the auditing spotlight will be on.
Small business seems to be the flavour of the year, with the ATO focusing on business that has a lot of ‘cash’ only transactions. In 2017, the ATO conducted 11,000 business audits, and recouping nearly $200 million in tax and penalties. As result of this ‘successful auditing’, the ATO have announced there will be more visits by their ‘Black Economy Taskforce’ to locations that have cash only shops.
If you have high levels of cash in your business, you may wish to consider moving to online or cashless systems to collect payments. In recent years Australia has moved away from cash so any business that can help its customers with card readers or online payment facilities will be a welcomed move.
The 2018 Federal Budget also proposed further restrictions on businesses accepting large cash payments so getting the technology to assist with getting paid is a good business move.
If you are a cash only business, you can still go online, you can download point of sale apps, such as Square, that have ‘cash’ options on them, so you can still collect electronic/digital records of cash sales. Just ensure that your records are up to date and you can account for all income, as well as outgoings.
To book an appointment to help you get your bookkeeping in order, call us on 3351 6111.