Nobody wants an ATO audit. While audits can happen randomly, there are steps you can take to reduce your risk. Here are five practical tips to keep your business off the ATO’s radar.
Keep Accurate Records
Poor record-keeping is one of the biggest red flags for the ATO.
Action: Use cloud accounting software like Xero or MYOB to track income and expenses in real time.
Separate Business and Personal Expenses
Mixing personal and business transactions is a common mistake that can trigger an audit.
Action: Open a dedicated business bank account and use it exclusively for business transactions.
Report All Income
The ATO uses sophisticated data-matching tools to detect undeclared income.
Action: Declare every dollar, including cash payments and side jobs.
Claim Deductions Correctly
Over-claiming deductions is a major audit trigger.
Action: Only claim expenses that are directly related to earning your income and keep receipts for at least five years.
Stay on Top of BAS and Super Obligations
Late BAS lodgements and unpaid superannuation are red flags.
Action: Set reminders for due dates and consider using an accountant to manage compliance.
An audit can be stressful and time-consuming, but with good habits and professional advice, you can minimise the risk. If you need help reviewing your compliance, our team is here to assist. Contact Advisory One today on 02 6324 5888
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