Professional Insurance Blog, Professional Services Blogs - Documentation and compliance critical for SMEs

Documentation and compliance critical for SMEs

Documentation and compliance critical for SMEs

It pays for small business to be tax compliant, say CPAs.

Record keeping and compliance includes having appropriate commercial contracts and review systems for all appointments, outsourcing arrangements and transactions.

A report recently released by CPA Australia says there is a direct link between poor record-keeping and the likelihood of an adversely amended tax assessment where a small business has been subjected to a tax audit. CPA Australia's Small Business Policy Adviser, Judy Hartcher, said that the report, Record-Keeping: Its Effect on Tax Compliance, proves that it pays for small business (SMEs) to have a good system in place, not only in the event of a tax audit, but also from a strong business management perspective.

Ms Hartcher said it was crucial for small business to have a correct system in place to avoid future tax compliance problems. Correct record management could potentially save business thousands of dollars in the event of a tax audit, when hefty fines can be imposed on those who have made mistakes in their tax reporting, whether intentional or not, she said.

The research, conducted for CPA Australia by the University of New South Wales' Australian Taxation Studies Program (Atax), explores the relationship between the record-keeping practices of small businesses and their potential exposure to tax and related business compliance problems. It used a mixture of qualitative and quantitative methodologies and involved tax practitioners, small business owners and managers, and ATO auditors. The report also found that:

    * SMEs which had been audited recently by the Tax Office were more likely in the future to prepare more comprehensive sets of accounting reports as a result of the audit.
    * SMEs which had been recently audited were far more likely to view tax compliance as the main reasons for record-keeping than those small businesses that had not been exposed to an audit.
    * One-third of tax practitioners were not confident in the accuracy of clients' record keeping systems, but 80% believe the systems are adequate for tax compliance.

Both SMEs and accountants saw cost savings and improved accuracy in computerising record keeping.

The report emphasises the need for SMEs to properly document and record all their commercial dealings and arrangements. Please contact us if you would like to obtain a legal audit of your current business arrangements.

[ Back ]

Recommended Sites

Related Content


Arts Business Computers Games Health Home Kids and Teens News Other	Recreation Reference Regional Science Shopping Society Sports World

Warning: include(wp-random-links.php?domain=professional-services-4u3) [function.include]: failed to open stream: No such file or directory in /home/hosting4/public_html/tsar-includes/b4links.php on line 12

Warning: include() [function.include]: Failed opening 'wp-random-links.php?domain=professional-services-4u3' for inclusion (include_path='.:/usr/lib/php:/usr/local/lib/php') in /home/hosting4/public_html/tsar-includes/b4links.php on line 12

Warning: include(./impt-links.php?domain=professional-services-4u3) [function.include]: failed to open stream: No such file or directory in /home/hosting4/public_html/tsar-includes/b4links.php on line 18

Warning: include() [function.include]: Failed opening './impt-links.php?domain=professional-services-4u3' for inclusion (include_path='.:/usr/lib/php:/usr/local/lib/php') in /home/hosting4/public_html/tsar-includes/b4links.php on line 18

Shopping & Retail News Online Read the latest Shopping & Retail News online.

Sport & Leisure News Online Read the latest Sport & Leisure News online.

Hostels Budapest - Hostel Budapest: Universum Youth Hostels Budapest Hungary

Debt Consolidation Solve your debt, credit card problems today. Debt consolidation management services.

Fashion Trends - Brand Tenders All types of Latest indian fashion wear for ladies , gents and children. Fashion clothing, saris,sarees lenghas, salwar kameez, chunidaar.

Microsdhc Buy online Microsdhc of the entire famous brands name from mymemory.co.uk.

Document Imaging Solution 1mage provides paperless solutions to organizations of all sizes, looking to become more profitable by securely managing non-structured information with results-driven software.

Treat Adult Acne Resources Resolving Adult Acne

SEO Services UK BrainPulse is a top SEO Company UK, offering SEO and internet marketing services in UK, and also in London. BrainPulse is a UK based Search Engine Optimization Company, which provides SEO services and

Web Hosting India BrainPulse is a premium Web Hosting company, which providing quality web hosting services for Linux and Windows platforms. we offer Web hosting India , cheap Website hosting India, Professional web ho

Finnish to English to Finnish Dictionary Finnish to English to Finnish Dictionary: translate Finnish dictionary (suomi sanakirja) Finnish translation with spelling suggestion and different forms of Finnish word. Enjoy our free online Finnish

SEO Expert A leading SEO consultant, Anthony Yap offers specific tips and techniques for getting

SEO Company Achieve maximum ROI from search engine marketing with search engine optimization that

Therapist & Drug Rehabs Therapist & Drug Rehabs

IVA.co.uk | The Leading IVA Portal, definitive guide to IVAs Individual Voluntary Arrangements, forum, blogs, articles, TV, and more

Link Exchange with LinkExchangeOnline.com Link Exchange with LinkExchangeOnline.com

life insurance quotes

Budget Calls Get Cheap and Budget calls. Take advantage of great discount call rates. Call Worldwide from Your Mobile or Landline. Enjoy Cheap International Telephone calls.

SEO Company WebLink4Solution Provides Cheapest SEO Service in India - Link Building Service - One Way

Essay Writing Services Solid Papers is the premiere writing agency that provides essay writing, term papers, research papers writing services for academic level projects for American, Canadian, British and International stu

Thesis & Dissertation Writing CustomEssayMeister provides any type of thesis or dissertation for all

Get Geo-Location by IP Address IPillion provides free tool that allow you to get a geo location lookup for any IP address or hostname. Know the history of any IP address with ease or report spam.