It’s Tax Time! How To Avoid A Tax Audit

Tax time is just around the corner and if you’ve already got a headache then let the pros have a go! Level Up isn’t your regular accountant, we’re the firm that takes your business to new heights. If the clock is ticking on your tax don’t lose sleep, turn to Level Up.

Why Us?

We’re the experts – not to blow our own trumpet or anything – but, we really are. Level Up is ready to smash your expectations out of the park and take your business to the next level. We know, the word accounting makes you want to fall asleep – but, Level Up is different. By different we mean our team wants to see your business reach new heights!

When you work with the Level Up team you can accept more than just words. We’re an action, constantly vigilant, and protecting your business against common mistakes. We want to show you what our team can actually do for you. We’re constantly changing and adapting our strategies to ensure your business saves as much tax as possible. We want you to rule the game. So, let us show you how to kick a goal or two with the Level Up team on your side.

We Know Our Stuff

We know our stuff when it comes to tax time and we want to share our secrets. At Level Up, our team understands that we’re not all tax wizzes. You’ve got enough on your plate without having to navigate the confusing world of ATO audits – so, let us take the reigns. Level Up is the team of experts you need on your side when June 30 rolls around.

Top 3 Most Common Questions about Tax Audits

When tax time rolls around it’s normal to be stressed. Let’s be honest, there’s nothing too exciting about getting audited by the ATO. If you’re wondering what an ATO tax audit could mean for you’re business we’ve answered some of the top questions:

1. What Flags Your Business For A Tax Audit?

It can be scary if your business has been flagged for a tax return audit. Wondering why this might happen? The ATO conducts a tax audit if they believe there is something untoward listed on your tax return. This could be anything from claiming work-related expenses that don’t fit the criteria to not having the correct records attached to your tax return. The long and short of it is… it’s a jungle out there. But, there are ways to avoid getting audited by the ATO. Level Up are the masters in audit tax advisory – so, don’t leave it to chance this EOFY!

2. What Are Legitimate Work-Related Expenses?

A lot of us get caught misclaiming expenses. So, what defines a ‘work-related’ expense? If you want a work-related expense to fit the criteria they will need to meet the following:

  • The expense must have been paid for and you must not have already been reimbursed for it;
  • It must be directly related to the earning of your income and not a private expense;
  • You must be able to prove it.

3. Keep A Record!

Record, record, record! If you or your business is audited by the ATO it will majorly help your case if you have a record of everything you claimed as a tax deduction. Make sure receipts are kept and expenses are noted and justified. The ATO requires you to keep receipts for up to five years after your tax return is lodged (we know, it’s a long damn time). The good news is, the ATO doesn’t require hard copies of receipts. They will very happily accept electronic copies (so, invest in a scanner!).

Keep An Eye Out

There are a few things that small businesses should keep an eye on when it comes to tax time:

  • Does your business carry stock? If so, carry out a stocktake before EOFY;
  • Small businesses owners should reconcile bank account as well as petty cash;
  • It is essential to compare debtors and creditors listings to amounts shown on your Balance Sheet to ensure they are reconciled;
  • What about GST? Business owners should reconcile GST and PAYG withholding accounts to the June BAS;
  • Have you reconciled wages and super? Businesses should reconcile wages and superannuation per the P&L account to the PAYG Payment Summaries;
  • No personal expenses. Make sure personal expenses have not been claimed as business expenses;
  • Make sure everything has an explanation! It is essential to ensure material differences to the prior year can be properly explained;
  • Receipts are your best friend! Make sure that you have substantiation (receipts, invoices, etc) for all business expenses – remember, electronic copies are okay;
  • Have you accounted for all the sales? Including cash sales – have been correctly accounted for;
  • New systems – Single Touch Payroll! Have you set up for Single Touch Payroll, which comes into effect from 1 July 2019 for small businesses?
  • Have you planned for the next financial year? Ensure that last minute tax planning opportunities have been implemented, including writing off potentially deductible bad debts, deferring income into the next tax year, etc.

So, What Exactly Can I Claim?

It can be tricky navigating the grey areas of what you can and can’t claim as a part of your tax return. These are just a few staples:

  • Travel Expenses: If you or your employers travel for business you can claim travel-related expenses;
  • Vehicles: If you need your car for your job or business you can claim vehicle-related expenses associated with running and maintaining your car;
  • Work From Home: If you work from home you may be able to claim a portion of expenses such as mortgage interest and electricity;
  • Technology: If you require a laptop or phone for your business this is claimable.
  • Uniforms: If you are required to purchase a specific uniform for work purposes this can be claimed.

Don’t React, Plan!

If you haven’t made a solid plan for this year don’t worry. If you’ve only just heard the Level Up name then we can’t blame you. Make your motto for July 1 – “new financial year, new me!” At Level Up, we’re all about mapping out the best possible game plan for your business so when the ATO audits come calling we’re ready!

The Level Up team is here for the long haul. You won’t just see us when the tax man comes knocking. Our team works by your side all year long to ensure your business avoids common mistakes. We kick the accounting jargon to the curb, give you the facts, and be real with you from the beginning. Let’s plan for success together!

Business Advisory

Don’t know what business advisory actually means? Let’s cut the trade talk – business advisory with Level Up basically means we’ve got your back. Our team will customise solutions for your business, protect your assets, hack your tax and structure your cash flow effectively. We listen to what you want and decipher the next big move for your business. We learn your business inside out to achieve the best possible outcomes.

What can our outstanding team of business developers do to level up your business:

  • Asset protection structuring advice
  • Review for business purchases
  • Business sale preparation
  • Business start-up advice
  • Finance applications
  • Cost-benefit analysis

When you put your faith in our team you can rest easy knowing that we are all about results. You know your business best – we know that. So, we take the time to get to know your business, before we offer our custom solution. Your business is unique, it’s one of a kind and we want to see it flourish. Level Up is the next step for your business.

Accounting

Tax is mundane – let’s be honest. But, the Level Up team isn’t like your regular dime a dozen accounting firm. We won’t bore you with long meetings filled with paperwork and language you don’t understand. We’ll get straight to the point and make it easy for you to understand the plan of attack. Our hard-working team goes above and beyond to ensure your business is compliant as to avoid an ATO tax audit.

The Level Up team is committed to pushing your business to new heights. If your business has hit a ceiling, our team has the strategies for growth. Our team will get to know your business. Level Up is a team of visionaries when it comes to pressing the accelerator on automated and seamless strategies that allow you to focus on what you do best, running your business!

We want to prevent you from getting audited by the ATO and implement strategies for long term tax success.

Tax Time: It Doesn’t Have To Be An Annual Headache…

We won’t try and sugar coat it. Tax time isn’t fun. Tax is never sexy. But, it’s a fact of life and that means you need a game plan. At Level Up, our team has the skills to manage your businesses cash outflows, create room for growth and optimise your ROI. Wondering what the game plan is? At Level Up, we think planning is key – however, we won’t just plan to save you on tax. Our team will provide meaningful guidance, insight and strategy to better your business in the long run. We think it’s all about building a good foundation – so, here’s what the Level Up team will do for your business:

  • Income tax return preparation and lodgement (companies, trusts, individuals, deceased estates)
  • Fringe benefits tax return preparation and lodgement
  • Establishment, planning and execution of tax minimisation strategies and structures
  • Indirect tax return preparation and lodgement (GST, PAYGW)
  • ATO disputes and penalty reduction & negation
  • ATO audit attendance
  • Capital gains tax planning, reduction, and calculation
  • Business income tax and capital gains tax concessions
  • Application for private rulings
  • Business and investment purchase structuring for income tax minimisation
  • Statutory minutes and reporting

Like what you hear? Just wait until you meet our team of superstars! Chat to our team about tax solutions today. We’ve mastered the skill of audit tax advisory.

We’re Ready. Are You?

The Level Up team is ready to launch your business to new heights. Whether you’re a mid-size business or a large corporation – we’re ready for whatever you throw at us. Level Up loves a challenge. Our team are the trusted industry experts in business advisory, taxation, and accounting and can work with you to set up a trust, manage your assets, and structure your business for asset protection. Whether you’re searching for accountants for architects, an accounting firm for electricians or need the right accountant for QBCC tax lodging – we’ve got your back. So, what are you waiting for? Level Up is the accounting firm you’ve been waiting for.