Putting up a business is indeed a very hard task to accomplish. You just don’t invest your money, you also have to sacrifice your time and effort just to ensure that it grows steadily. As businesses come, you might even have to work days and nights especially when problems arise. These are the risks that you need to take when you decide to be in the business field.
As a business owner, you need to keep an accurate and updated record of all the transactions you did throughout the span of your business career. This is to ensure that whenever you are subjected to investigations, you have a clean record for the officers to look at.
Recently, the Australian Taxation Office (ATO) has been making rounds to different types of businesses – small, midsize, or large. These businesses are being audited to ensure that they are paying the right amount of tax that is due to them. A tax audit or enquiry is the examination of your tax affairs to the ATO to see if you have done whatever it is that you are obliged to do under the tax laws. You have to make sure that you have declared all the assessable income you received.
Getting audited is not a question of if but rather a question of when. It will happen to you one time or the other. Thus, it pays to be prepared. Most business owners nowadays avail of an audit protection insurance to protect their business. Audit protection insurance can cover the professional fees that are normally charged to you when your accountant assists you during the investigations. This is very important because the cost of such fees can be very expensive.
Getting audited can sometimes boil to luck. Even though you have paid all your dues religiously, you can still be audited. And if you are in dire need of luck, you can be targeted. The process of being audited can be long and expensive. Thus, availing of the audit protection insurance is a must if you do not want to close your business because of financial instability (again, due to the cost of the investigation). The insurance will help you when these problems arise.