Filing of a business tax is one of the most important compliance requirements of any corporation. Errors in this process may involve penalties or charging interests, or even an audit by the ATO (Australian Taxation Office). These can be avoided with a bit of planning, proper records and assistance from an accounting firm in Perth or a business tax specialist.
In this aspect, this guide will highlight six common tax return mistakes that business makes, along with solutions to avoid such issues.
Misstatement of income or wrong statement of expenses is one of the most widespread mistakes which businesses make in income tax return preparation. This can occur accidentally, especially when the records are insufficient or the owners have no clue what constitutes a valid deduction.
The most common mistakes are:
Such mistakes make the audit risky and may result in imposing penalties on your business if they are noticed by the ATO.
It is necessary to ensure that records are clean and well organised throughout the year. Working with professional bookkeeping services assures that your income and expenditure are well recorded.
The other expensive error is the late lodgement of your company tax return or BAS (Business Activity Statement). Failure to lodge on time is subject to a penalty imposed by the ATO, and interest may accrue on unpaid tax liabilities.
Small businesses often face competing priorities and may overlook due dates, especially when managing multiple compliance obligations such as BAS lodgments, superannuation and PAYG (Pay As You Go).
A skilled business consultant Perth is able to assist you in establishing procedures for dealing with deadlines. It may involve developing a compliance calendar or using auto reminders. By engaging the services of a competent and trustworthy provider of accounting services, the lodgment of the taxes can be conducted on time.
As a result, the preparation of the ATO company tax return will be less stressful during its peak period.
Many businesses find the company tax return instructions complex, which leads to errors.
This is particularly true for issues like:
Without a clear understanding of these requirements, businesses risk both under- and over-reporting.
Consulting a BAS accountant or tax agent licensed by the Tax Practitioners Board can prevent the occurrence of costly errors. These experts simplify complicated procedures, dividend payment and allocation of franking credits.
This is especially important as you prepare for the ATO company tax return, because rules and thresholds can change on yearly basis.
Poor record-keeping is the starting point of many tax filing mistakes.
Without reliable records, you may face these issues:
Invest in bookkeeping services by professionals that entail frequent reconciliations as well as cloud-based bookkeeping. This provides you and your accountant with clear and up-to-date records throughout the year. BAS service providers can also make sure that your accounts are under control prior to tax, with the maintenance of audit-worthy documentation.
One of the typical mistakes that are made in small and medium businesses is thinking about compliance rather than strategy.
Without proactive tax planning, businesses may miss opportunities to:
Consult with a business advisory Perth firm that provides a strategy to plan taxes, rather than a compliance firm. A tax planner can also work with your accountant to identify legal ways to reduce your tax liability, improve cash flow, and support long-term business goals.
Businesses registered for GST (Goods and Services Tax) are required to lodge accurate BAS returns, but errors are common. These can include:
Such mistakes can lead to penalties or incorrect tax positions.
You should consider outsourcing BAS preparation to a BAS agent Perth. A dedicated BAS team can make sure to provide you with accurate reporting of GST, PAYG and other considerations. As a result, all of these services can help you to meet deadlines and avoid costly errors.
Lodging a business tax return requires careful planning, accurate record-keeping and the right professional support. In this area, a professional accounting service provider can provide you with proper assistance for your company tax return 2025. These experts can guide you through ever-changing tax regulations, which will allow you to identify valuable deductions and provide peace of mind.
The BAS agent is registered as a person delivering the services associated only with Business Activity Statements, GST, PAYG, and respective obligations. A professional accountant who gives out professional accounting services further gives out tax, financial, and advisory services. Both are well used in many businesses to make sure that all compliance and tax strategic issues are taken care of.
In case you have failed to meet the lodgment deadline, call your accountant or business advisor in time. Seeking professional support in accounting for business ensures you are well-prepared to manage such situations effectively.
The ATO usually wants you to show your evidence of any claim or expense you include in your tax return, which can either be in the form of receipts or invoices. Lack of documentation also means that your claim can be denied in case of review or audit. However, consulting bookkeepers for small businesses can provide you with the assurance that your records are up to date and accurate.
A business tax expert will assist you legally to spend the least amount of taxes by claiming the various deductions allowed, timing when you buy any assets, carrying out an audit of how your business is structured, and helping you claim the various small business concessions.
Many accounting services Perth suggest that you should maintain a record of all the income, expenses, purchases of the assets, logs of the vehicles and any other transactions that influence your tax. ATO asks that you maintain records for at least five years. Engaging a professional bookkeeping agency will keep your records comprehensive, precise, and they will be kept safely.
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