Small business owners can benefit by using the Tax Office’s small business benchmarks to compare their business performance with industry averages.
What are Small Business Benchmarks?
The small business benchmarks are financial ratios that have been extracted from more than a million lodged income tax and BAS returns.
What are Small Business Benchmarks used for?
The benchmark data is used by the Tax Office to compare a business’s performance against others in the same industry to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income.
How can I use them to help my business?
Business owners can use the small business benchmarks to check how their own business is performing and identify if their results out of line with industry averages and tax office expectations.
This can help you to find areas for improvement in your business e.g. profit margins or excessive labour costs etc.
It is worth noting that a large deviation from benchmark data in your favour (e.g. excessive expenses compared to the level of sales income) is more likely to attract the audit attention from the tax office.
Find Out More
See this ATO website page for information on how the small business benchmarks can be used to help your business and see this ATO web page for a links to the benchmarks listed alphabetically (by industry type).
Contact Us
Get more Free Tax Tips and find out more about Beck Partners , Who We Are and What We Do at our website and feel free to contact info@beckpartners.com.au if we can be of any assistance.