Common Mistakes Businesses Avoid with Professional Bookkeeping in Australia
DIY bookkeeping may not always be economical for small businesses. Bookkeeping in Australia involves accurate recording and maintenance of essential business records in order to support activity statements lodged at the Australian Tax Office. Unless you are a certified professional in bookkeeping or accounting, you may not know all the basic accounting principles, tax laws and updates which govern record keeping and lodging obligations.
Common tax mistakes
The duty to maintain good records starts at the time money flows in and out of a business. Small businesses may be tempted to forego Professional Bookkeeping in Australia until operations generate a considerable volume of transactions. This exposes a taxpayer to potentially costly mistakes in reporting revenues, deductions, and calculating tax obligations. Some of the common tax mistakes businesses make include:
Missing tax deadlines
Businesses are required to lodge their PAYG or BAS statement on specific dates. Owners who do their own bookkeeping often incur penalties for failing to lodge their statements on time. Qualified bookkeepers take care of updating business records and ensure that the appropriate forms are lodged on time.
Paying insufficient super contributions
Australian superannuation laws provide the bases for calculating the correct amount of super contributions. Lack of understand of superannuation laws often leads to the payment of incorrect super contributions and corresponding penalties for non compliance. Professional Bookkeeping in Australia eliminates this common mistake.
Claiming incorrect deductions
Business expenses may be deducted partially or in full, depending on their tax treatment. Incorrect deductions may be disallowed and assessed penalties and interest on the resulting shortfall in taxes.
Failing to comply with new tax laws
Tax laws, rules and regulations change occasionally and it is the taxpayer’s duty to comply with new requirements. Lack of knowledge is not an excuse for non compliance. Registered bookkeepers are required to stay updated on the latest tax news and rules. They help clients comply with new laws by incorporating changes in recording systems and statements.
Bookkeeping software may eliminate most of the errors in recording transactions only when the business owner has a clear grasp of accounting principles and tax laws. A registered BAS agent knows how to use accounting software and what transactions must be recorded in it. Proper recording reduces errors in end-of-year accounting and preparation of annual tax returns.
Professional bookkeeping in Australia such as Jet Bookkeeping services can keep accounting records manually or electronically for you, minimising errors in activity statements and ensuring that these are lodged on time.