Gone are the days when a “cash business” could hide earnings – thanks to Bill Gates and others in Silicon Valley, the ATO now has sophisticated data matching software.
They can compare similar businesses and create reports showing “average” turnover for a particluar business, and then cross-check against the tax return / BAS lodgment of that business.
It would be a huge job to be a bookkeeper for the Australian Taxation Office. During 2006/07 the Australian Government collected $135billion from individuals, and paid out $17billion in tax refunds
It’s no surprise that the ATO has so many more resources now than in days gone by for extracting every tax dollar from individuals and small businesses.
As bookkeepers, it seems most days we are working for the Australian Taxation Office, yet being contracted to small businesses in and around Robina / Varsity Lakes / Reedy Creek area.
During the period 2006/07 the ATO collected $40billion in GST, so of course the ATO is going to be doing everything within its means to ensure that every tax dollar is accurately reported.
Can A Business Hide Cash in Bookkeeping?
You may have a Car Wash business in Robina, or you may be an electrician in Reedy Creek, doing cash jobs. The ATO can make a reasonable estimate of your tax liabilities and then come along and audit your books.
If the records appear to be disorganised, it will take the ATO longer to look through them. The longer they take, the more they will see, and the more questions they will ask.
If you can present them with an organised and tidy bookkeeping system, they are less likely to ask too many questions.
Whether you use MYOB or Quickbooks, or maybe you do not have any accounting software or even any bookkeeping system in place, then contact us NOW for an initial FREE consultation
