Get the Best out of the ATO……….. just USE it
“ATO debt recovery ‘kills small business’ : Ombudsman” screamed the headlines.
“’Killing the dream’ business owners sleeping just four hours a night”
shouted out another front-page.
The ATO being seen as the big bad wolf www.mybusiness.com.au/finance/5712-ato-debt-recovery-kills-small-business-ombudsman is a somewhat damning article concerning the ATO’s seemingly heavy-handed approach to debt collection. There are robust arguments from the ASBFEO* and the response from the ATO.
This then links to the second headline buster “Killing the Dream” https://www.smartcompany.com.au/people-human-resources/wellbeing/red-tape-business-owners/
Australia cannot afford to ignore the SME, its contribution to the national economy is huge and the importance of this must be supported and recognized.
However the SME does have to accept the responsibilities than come ‘with the job’ as it were. There is no doubt that over the last number of years running a business has become more complex BUT technology, accounting packages, web information and similar have added efficiencies to SME administration.
This is not the place to debate the comments or to take sides but to pick up on a couple of points made by the ATO that raises the following questions: -
- Does YOUR business use all the ATO tax information available as much as it should?
- Does YOUR business use the ATO in positive ways to help not only with compliance issues but also to take advantage of its educational bulletins and papers?
- Is YOUR business sufficiently alert to new procedures?
There is help. The ATO has a very informative, user friendly, and informative web site. For example, the Managing Payments Section on preventing debt offers this advice:
- Keep amounts for GST, superannuation and income tax payments separate from your other business affairs. (e.g. different bank account) A prepayment system is also available with the ATO.
- Manage your cash flow
- Maintain business records on a very regular basis (weekly / monthly)
- Understand tax obligations and forward plan (i.e.: put into the cash flow)
The 2020 financial year starts very soon, a good place to start for new business resolutions.
As for ‘Killing the Dream” sorry but unfortunately owning a business is not synonymous with a balanced life style, stress-free life, late mornings or early nights. However good time management, a ‘do it now’ approach and always being on top of the finances are three ways towards sound business health.
We can add to the ATO advice above: -
- Keep abreast of new procedures. The article makes the comment that small businesses are scrambling to prepare for July 1 Single Touch Payroll. BUT this has been coming for a long time, the ATO has not kept it a surprise. Don’t shove the hard stuff under the carpet
- Plan each week ahead of time and stick to the plan as much as is reasonable.
- Pick up the phone to do business. Ping pong emails are true time and money wasters. Get decisions promptly and move on.
- Don’t waste time on irrelevant mobile phone ‘stuff’
"Indoors or out, no one relaxes
In June, that month of wind and taxes,
The wind will presently disappear,
The taxes last us all the year."
(June replaces the original March, with apologies to Ogden Nash)
Written by Jennet Cunnington