If your business is in financial difficulty get proper accounting and legal advice, to increase the likelihood of business survival.

Some warning signs of insolvency are:

• Ongoing losses
• Poor cash flow
• Incomplete financial records
• Increasing debt
• Problems selling stock or collecting debts
• Unrecoverable loans
• Creditor’s unpaid or paid outside of trading terms
• Solicitor’s letters, demands, summonses, judgements etc. Suppliers placing your company on C.O.D. terms
• Overdraft limit reached or defaults on loans repayments
• Problems obtaining finance
• Overdue taxes and superannuation obligations

Make sure you can substantiate ALL of your tax deduction claims.

Please contact me if you need assistance.

SMALL BUSINESS BENCHMARKS

The A.T.O. uses small business benchmarks to identify businesses that may not be reporting some or all of their income.

Input benchmarks (income to labour and materials used) apply to tradespeople who undertake domestic projects and are responsible for purchasing their own materials.

Performance benchmarks provide financial ratios for your industry that

compare your business performance to others in your industry.

The ATO reviews the following performance ratios:

cost of sales to turnover, total expenses to turnover, rent to turnover, labour to turnover, motor vehicle expenses to turnover, non-capital purchases to total sales, GST-free sales to total sales.

It is very important to review your business benchmarks regularly.

 

Please contact me if you need assistance.