It has been a very challenging time for businesses, and small businesses in particular have been greatly impacted by the pandemic. In order to survive, business owners have had to look outside of their usual ways of working and find new opportunities. Many will have had to adapt their business structures to meet Covid-19 restrictions, such as taking their business online, and others may have had to downsize with the view to being more flexible if further restrictions are imposed.

Whatever the situation, the business landscape has probably changed for you, so it would be a good opportunity to benchmark your business against similar businesses in your sector. This would give you a grasp on where your business is sitting amongst competition and potentially give you some ideas for how to make improvements.

Whether you’re running a cafe, a dental practice, a dog grooming franchise or an automotive repair shop, all small businesses can benefit from benchmarking to see how your performance ranks, giving you a clearer picture of where improvements can be made. The ATO release updated benchmarking information each year based on the previous year’s tax return statistics.

This can be accessed via their app which has performance data from 1.7 million small businesses across Australia, covering more than 100 different industries and up to 15 million turn over.  Using the benchmarking information, it can help you pinpoint the areas of your business that need your attention, to help you improve your performance, grow your business and potentially increase profits!

Benchmarking looks at a number of categories including (but not limited to) turnover, total sales, profits, expenses, advertising, rent costs and staff. The ATO’s methodology recognises that there are many subgroups within an industry and they often have diverse product lines so you can have confidence that the data applies to your specific sector or trade. You can find out more about this here

Taxpro also offers a FREE small business benchmarking report for your sector, so if you are interested, have a chat with your Taxpro accountant. We are here to support you with all your business needs, helping you grow and be more profitable – in good times and bad!

Call us on 08 9240 7629 or email: admin@taxproaustralia.com.au

 

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