In the run up to Halloween, we always get a funny comment or two about turning up to the Halloween party as the taxman! However, if you are someone that lives in fear of an envelope from the tax office landing in your post box, then it can feel very scary.

If completing your taxes fill you with dread, then you are not alone. Tax anxiety is real with the some of the biggest fears being making mistakes, owing money and being audited.

Our clients know that taxes don’t have to be scary. We take the time to help our clients understand their taxes so they can make financial decisions which can save them money in the long run. We always make sure that they are fully informed about their tax obligations, what deductions they can make and when deadlines are looming. Even if you are audited by the ATO, which can be a worry at the back of people’s minds, if you keep accurate records there’s should be nothing to worry about.

Get organised

This is without doubt the most important piece of advice we can give you. You need to account for all income and all expenses within the quarter (or month if you lodge monthly). This includes sales, running costs, equipment purchases, wages, interest, supplier costs etc… and you will need to be able to justify all transactions. While many receipts now come in a digital form that you can save on your computer, you will still get paper receipts. Remember, the ATO can audit your business at any time within the last 5 years, so you need to have a place to store them as well as keep them in order so if asked you know exactly where they are. We know that receipts can get lost, shop receipts can fade over time and it can be a big administrative task if you are asked to provide evidence of deductions from years ago.

We would advise all our clients to use a Receipt Bank system called Dext, a system that automatically converts all your receipts into data making it easy for you to send your tax information straight to us. We can set you up, so you don’t have to worry.

You can protect yourself from ATO audits

If you receive an audit, review or investigation letter from the ATO, it doesn’t automatically mean you have done anything wrong. Anyone can be audited at any time. Based on the financial information you provide us with, we ensure that all your financial obligations are compliant, so you shouldn’t have anything to worry about.

However, the ATO has announced that its audit activity is increasing, and we have already had two clients receive audit reviews recently.

We offer our clients a tax audit insurance policy called Audit Shield. It’s important for us to declare that we don’t take a commission from this, our aim is purely to provide you with the important information regarding audit risks and implications, so you can make an informed choice. It means that all the professional fees are covered which includes any accounting, legal and specialist fees (such as surveyors or valuers) you need to complete the audit.

From scared to self-assured

The past two years has brought a lot changes and upheaval for many. This has included changes to the tax system with government financial assistance schemes, cash flow and asset write-offs; potential incomes losses; and working from home instead of an office, your business activity statements might look very different to your usual statements. It’s a good opportunity to get a clear understanding of your tax situation and make sure you don’t miss out of any potential tax incentives while they last.

If you need help with tax planning, getting a loan, or insurance cover, please give our Taxpro team a call. We have a number of experts here in Balcatta, Perth that can help you reach your goals.
Call us on 08 9240 7629 or email chloe@taxproaustralia.com.au to arrange an appointment for a friendly chat!