Everyone has to deal with a tax return in Australia in one form or another and for most it can be a confusing time. However, once you deal with them, there really shouldn’t be any issues. For most people, they submit their returns and wait for their refunds but find that they’re audited. Now, audits are not pleasant because it can be a very long, drawn-out process and one which gets you on edge. However, there may be a few ways to hopefully avoid an audit or at least make your returns audit proof. Read on to find out more.
Have a Professional Tax Accountant Deal with Your Tax Returns
One of the very best ways to ensure you don’t get picked for an audit would be to use a professional tax service. These are the people who are able to deal with your returns in a timely manner and ensure everything is handled as it should. Also, they are able to ensure any information that must be added is included. That will help prevent auditors from knocking on your door. If you want to find out more about having a professional deal with your returns, check out taxreturn247.com.au.
Are You A Corporation?
Sometimes, businesses are audited but one way to help avoid this is if you class yourself as a corporation. Now, if you are a corporation but haven’t named yourself as one, it’s time to do so. This may help avoid any unnecessary audits for the time-being. A lot of people really don’t think about their business status but ends up facing the auditors. Know your business and ensure you don’t make a mistake on the tax return.
You Must Ensure You Document Every Bit of Income You Receive
A lot of people don’t class certain earnings as income. For instance, renting a storage loft that has been in the family for years, a lot of people think any income from that doesn’t need to be reported. Unfortunately it all does, even if there is nothing to pay on it. There needs to be documentation of all income sources so that you have proof of everything. All pieces of financial data can be added with your tax returns. This may also help avoid an audit.
Look At Professional Software to Help Keep Track Of Your Finances
When you have a business, even if it’s just you and a few others, you need to know what you’re earning. Yes, you might think you have a fair idea but if you don’t you could make a mistake somewhere on your tax return. If you do then you’re more likely to be audited and that will cause more trouble for you. That is why if possible, invest in some professional software. Accounting software will be able to keep note of all finances, including financial statements and receipts which may be far easier to deal with. You’ll be able to identify what expenses you have, if any, and any income.
You Need To Be Truthful
When you’re dealing with your tax returns it’s necessary to ensure everything you add or tell the Australian government is legitimate and truthful. Being dishonest, even slightly, will result in an audit because everyone gets caught out. The trouble is you can actually think adding more expenses can be better but in truth, it’s not. You should only ever add legitimate business expenses or deductions. If you want to avoid an audit, this will be a necessity.
Avoid the Audit
There are more people who go through an audit more so today than ever before but the trouble is that people aren’t always being honest with what they tell the government. Also, their returns aren’t correct so it gets the authorities wondering if you’ve deliberately made mistakes. However, an audit doesn’t have to land at your door, not if you’re careful and truthful. Take care of your tax returns in a timely manner and avoid the auditors.