When the systems businesses use for capturing and recording GST information fail, often businesses go on to report incorrect amounts of GST and make potentially costly errors. These errors as the integrity of business systems (IBS) risk.
Systems may fail because they are not set up properly to start with or because they are left unchecked for long periods of time. Whether you are a new or established business, we encourage you to review your business systems, processes and controls – they could be costing you time and money!
Inadequate or out of date systems and non-existent or poorly documented controls can lead to a wide range of errors and issues. Common causes of systems errors include:
- Accounting systems failing
- Incorrect or incomplete activity statements
- Incorrectly interpreting GST legislation
- Classifying taxable supplies as GST-free or non-taxable.
Businesses going through a change are most at risk of incorrectly reporting their GST. This can include businesses that are:
- Growing rapidly
- Restructuring
- Going through a merger or de-merger
- Installing new accounting software
- Experiencing a change in accounting staff.
How does the ATO identify businesses at risk?
South East Access Business Compliance package provides business with a stress-free business reporting system to the Australian Taxation Office. More Details
