How does your business compare?
Written on the 21 March 2012 by Macmillans Waller Fry - Accountants
Check your small business benchmarks regularly
The ATO has recently updated its small business benchmarks. It has also added two new activity statement benchmark ratios for non-capital purchases and GST-free sales.
The ATO uses the benchmarks to identify businesses that it considers may not be reporting some or all of their income. The ATO can also use the benchmarks to quantify income that it considers not reported. According to the ATO, the benchmarks provide the "most accurate predictor of business turnover for each industry".
It recommended that taxpayers review their relevant business benchmarks regularly.
The ATO has published benchmarks for a wide range of industries, including:
ATO data matching coffee sellers and builders
The ATO has announced data matching programs targeting coffee sellers and hardware store trade account holders as part of its latest compliance activities to tackle the cash economy.
The ATO said it has already obtained data from a number of coffee suppliers and a major warehouse chain and from NSW Fair Trading, Queensland Building Services Authority, and the Government of South Australia, Consumer and Business Services. Under the "coffee suppliers" data matching program, the ATO expects to match records of more than 8,000 individuals to ensure they are reporting all their business income.
In relation to the "building industry" program, the ATO says around 20,000 individuals will have purchases cross-checked with reported income.
If you are concerned these data matching programs will affect you, please contact our office.
Author: Macmillans Waller Fry - Accountants