We know that small businesses work hard to get things right; however we understand that mistakes happen:
- reporting income, such as income earned outside their business. This includes non-monetary payments or payments in kind
- claiming expenses, such as claiming for the portion of an expense related to personal use, or overstating the cost of goods sold and other business expenses
- calculating business losses
- applying non-commercial loss rules to offset the loss against other income
- claiming PAYG withholding refunds
- reporting or failing to report personal services income (PSI).
You can help your clients avoid these mistakes by referring them to our Tax Time toolkit for small business. There’s a directory of links, including information on business income and deductions, to help them get things right.
You can also encourage clients to use the ATO app to access and manage their tax and super and the myDeductions tool to capture expenses as they arise.
If your clients are unsure what records to keep, they can take this free, self-paced course in record keeping: Essentials to strengthen your small businessExternal Link.