Protect yourself against ATO audits!

Few truly realise the costs involved to prepare and participate in an ATO audit, plus sort out any problems identified. $270 per annum secures $10,000 professional fee coverage. Act now, before it costs you!

With solo business owners, spare time and cash flow are precious commodities. If you’re selected for a Commonwealth or State government audit on a previously lodged return, you need to be financially able to engage your accounting adviser, who will spend time to reconcile your financial records and returns prior the actual government audit taking place and then resolve any subsequent errors found.

It’s extremely important to get it right. Spending time prior to a government audit is critical because, by volunteering any errors found prior to the actual audit commencing, will likely avoid fines being imposed. You’ll still be liable for any resulting amended assessments (i.e. where assessed that extra tax or duty is payable) and associated interest penalties.

Whilst most government audits typically focus on a single reporting period, many expand into multiple reporting periods, further increasing the level of external accounting adviser fees incurred.

It’s simply not worth the financial risk when, for a nominal annual fee, you can subscribe for Audit Management Service (AMS). AMS fees are tax deductible.

As most solo business owners are only likely to be submitting returns to the Australia Tax Office, a number of audit examples will better inform as to likely audit costs

1. One quarter BAS audits can range from $350 where further substantiation is sought to $3,000+ where a field audit is conducted
2. One quarter BAS audit that extends into multiple BAS quarters can range from $1,500 to $3,500+
3. A BAS audit that extends into a single or multiple year Income Tax audit can range from $2,000 to $5,000+

The ultimate fees incurred are influenced by many factors including the quality of financial records retained by you including supporting documents; the transparency of various activities/transactions undertaken; and the technical depth of the audit as your accounting adviser may have to involve a more specialist accounting adviser to assist or obtain a legal opinion etc.

It’s unwise to assume that ‘it won’t happen to me’. Having procedures in place and paperwork in order isn’t immunity against being exposed to a random or targeted audit.

Protect your business today

Many solo business owners will most likely only lodge returns with the ATO, so visit www.atoaudits.com.au

If you lodge returns with other Commonwealth or State Government agencies, then visit  www.govaudits.com.au

We recommend that you act sooner, rather than later, as any notice of a pending audit received prior to sign up, won’t be covered.

Additional small business services

Also check out other services that will assist to promote your business or reduce costs at www.voip.au.com; www.uptheroad.com.au; and www.webconsole.com.au.

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