May 31, 2019 3:40 pm | by Fiona
Tax can be stressful and with the end of year tax return approaching fast, it’s best to start planning to avoid the headache. Your tax return reveals insights on how your business is performing. Decisions can be made on investments opportunities, where you can cut costs and opportunities arising to maximise profits. Super, GST and ATO reporting are all part of your tax obligations, so what documents for tax return do you need to make sure are lodged properly?
6 requirements of your business tax return
Not every business will have same requirements. Here are a few fundamentals that need to be calculated, and documents for tax return that are necessary to lodge a successful one.
BAS and PAYG reporting
Have you been lodging your Business Activity Statement BAS, via SBR2 Pay-As-You-Go PAYG and superannuation throughout the year? Single Touch Payroll STP also became mandatory on the 1st July 2018 for companies with over 20 employees as the new way of paying wages. Your BAS reporting should be monthly or quarterly and its important they are accurate and efficient.
When it comes to expense tracking, make sure your data is up-to-date and categorised. This will make it easier to quickly determine your profit and loss. You should be keeping track of stock, inventory of products or parts so you can calculate cost of goods sold.
Your cash flow has to be accurately represented even if it’s a negative. It’s also important to know whether your company is using accrual (products or services are invoiced to a customer) or cash-basis accounting. The type of accounting you use will determine which recent transactions count as income for the current year and which are saved for next year’s taxes.
Separate Personal & Business Expenses
Expenses need to be categorised and separated as business or personal. Ideally, you’d want to have a separate business account, but if you don’t, this is incredibly important.
Deductions such as mileage, travel, clothing and home office should be tracked throughout the year and claimed in your return. Capital expenses like machinery can be depreciated over a longer period of time.
You should have available the right data at the right time. Year-to-date (YTD) reports, payment summaries, turnover, Profit & Loss Balance Sheets, liabilities and more. With comprehensive reports you can focus on and remove bad debts, prepare and lodge for the ATO, and stay on top of your obligations.
If this seems a little overwhelming and your growing in size, it might be time to look at investing in accounting software. SapphireOne Accounting Software saves you time by automating processes and prefilling statements for the ATO. SapphireOne’s secure connection is complaint and ensures lodging of BAS, payroll, super and tax is fast and accurate. Your end of year business tax return can be calculated after generating reports with all the necessary financial information from your one data file.
SapphireOne achieved Full Certification Single Touch Payroll (STP) and Standard Business Reporting (SBR2) on 1st May 2018
May 3, 2018 3:24 pm | by Loren
Based on the information provided SapphireOne has been assessed and given Full Operational Framework Approval for SapphireOne who are consuming BAS (PLS) and STP low risk API (payevent services) with the following terms and conditions.
API consumption conditions
- Full Approval granted SapphireOne for BAS services (PLS) and STP low risk API (payevent services)
- SapphireOne have ISO certification with software stored and managed by the client, in accordance with our requirements MFA is not a requirement as the as they are Desktop application provider storing no data onsite.
Production Verification Testing (PVT)
You must successfully complete the required PVT scenarios with your Account Manager for each PLS API required.
Changes to your situation
The ATO must be notified via your Account Manager of any changes to your business or product environment, in relation to the information you supplied in your questionnaire.
Monitoring is considered a joint responsibility between the ATO and the DSP.
The ATO conducts monitoring at the network, application and transaction layers; if anomalies or areas of concern are identified, we may re-assess your whitelisting suitability. The ATO will generally contact you or your representative unless exceptional circumstances apply.
Where you identify a breach through your own monitoring controls you must notify the ATO immediately via your Account Manager to ensure appropriate action can be taken.
Please respond with your agreement, understanding and acceptance of the conditions contained within this email.