From time to time businesses find that they have a tax audit.
The key is to know when it is going to happen and plan for it. The Your Business Angels accounting team can help you prepare for this so that it has as little interruption as possible.
If you don’t plan well for an audit, then the tax department, will seem to be around a long time, wanting more information and will want to see more, especially if they are thinking you are being evasive.
If you engage our company to help with a tax audit we will
1. Make sure we have all source documents and information at hand for the audit. It’s pointless handing over part of the information, knowing that without everything it will only drag on and on.
2. We prepare well, look at the information and try and give you an indication of what the results will be, and plan to deal with additional tax, fines and other debts that may occur. Many audits in relation to say a GST audit may have arisen because your business does not fall in the ATO benchmarks and they are looking to see everything is in order.
3. It’s a good time to review the accounting program and get in place changes that will stop the problems in the future.
The 2 big audits are an employee obligation audit, and a full company audit.
An employee obligation audit covers PAYG and superannuation. We need all employee details, as well as payroll records, records of super payments and PAYG summaries from previous years. These can be quite time consuming and hard on a business owner, especially if the business has had a number of employees cycle through (happens a lot now) and records need sorting.
A full company audit may cover the above, as well as a GST audit and income tax audit.
Your Business Angels accountants prepare well, so they can work with the Australian Taxation Office for a quick result as well as be available for any negotiations, appeals and ongoing discussions.
Fines after an audit can be substantial – so if you have concerns about your records, perhaps we could do an informal audit or data test to see that work has been properly processed.