Taxing Topics: A Guide to Your Business’ Financial Obligations

Taxing Topics: A Guide to Your Business' Financial ObligationsWhether you are a brand new startup or you are a well-established enterprise in Australia, your business needs to fulfil a number of financial obligations. With so many different aspects of your business to manage, it can be tempting to put financial management on the long finger. However, as a business owner, it’s crucial that you keep up with your financial reporting requirements so that you avoid incurring penalties or fines.

From payroll to business activity statements, financial year reporting, and calculating GST, there is a seemingly never-ending list of financial reporting requirements that you must keep up-to-date with. While taking care of all of these tasks might feel overwhelming in the beginning, with the right approach, you can be sure that you stay on top of your business finances going forward.

With your business’ financial obligations under control, you can get on with focusing on the more important aspects of running your company. Let’s take a closer look at some of the most important financial obligations that your business will need to adhere to when operating in Australia.

Payroll

Since July of 2019, small businesses with twenty employees or less must submit payroll reports to the Australian Tax Office (ATO) through the use of Single Touch Payroll (STP) software.

Savvy business owners use modern accounting and payroll software platforms that integrate easily with the ATO system to ensure that accurate payroll reports are submitted on time and with the relevant information.

Business Activity Statement

All businesses in Australia are required by the ATO to submit a Business Activity Statement (BAS) either on a monthly, quarterly, or annual basis. Some businesses must also submit an annual GST return too if eligible.

BAS reports are used to report and process the payment of goods and services tax (GST), as well as Pay As You Go (PAYG) instalments, PAYG withholding tax and a range of other tax obligations that Australia businesses must comply with.

To set up a business in Australis, you will need an Australian Business Number (ABN) and register for GST. When you go through this process the ATO will assign you a business activity statement for you to lodge at the appropriate time. Every business in Australia that is registered for GST will need to lodge a BAS by the assigned deadline.

Income Tax Return

The financial year for the purposes of tax is from July 1st to June 30th every year. Business owners across the country need to ensure that they lodge an income tax return for the financial year period every year. Sole traders, however, are exempt as they can declare their business earnings as part of their personal income tax returns.

Required Record Keeping

 As a business owner in Australia, you are legally obliged to keep financial records for a period of five years after they have been obtained, prepared or when transactions have been complete. Financial records must be kept in English and prepared in a format that can easily be accessed by the ATO.

Keeping proper financial records will help you to monitor your business finances with confidence and allow you to make the right decisions for your company going forward.

Be Sure To Meet Your Financial Obligations As Business Owner

 Meeting your financial obligations as a business owner will help you to keep track of your business finances, allocate funding to the areas of your business that need it the most and avoid incurring any fines or penalties. With the right approach to managing your business finances, you can be sure that your business will be able to meet your obligations to thrive and grow moving forward.

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