Using ATO benchmarking for business improvement

How we use ATO benchmarking to help your business succeed

The ATO recently released their small business benchmarks. The benchmarks, updated annually, are financial ratios to help compare your business’s performance against others in your industry. They are used by the ATO but can also be used to find business improvements.

The ATO use the benchmarks as a guide on industry trends to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income, or by overstating their expenditure.

Being outside the benchmarks doesn’t necessarily mean something is wrong, but checking them allows you to review your record keeping and reporting to ensure you are meeting all your legal requirements. If mistakes are found then you, or we on your behalf, can make a voluntary disclosure to the ATO.

Releasing the benchmarks, Assistant Commissioner Matthew Bambrick said the benchmarks can also be useful by small businesses and advisers to gauge competitiveness, costs and profits.

‘Sometimes when a small business finds themselves outside the benchmarks for their industry it may be because they have more waste than their competitors or they’re spending more on materials in comparison. Using the benchmarks as a guide, not only can they identify where they are slipping behind but also how they can improve and build their business.’

Our Synectic advisers often tailor benchmarks to look for improvements our clients can make. We use benchmarks together with our cloud-based reporting tools to help our business clients make better decisions in areas such as managing expenses, inputs, waste, internal cash controls, and pricing.

 

Contact an adviser in Devonport, Hobart or Launceston today