Sneaky, right? Also, illegal.
Since the ATO investigation started, more than $2 billion has been reclaimed, and a further $2.7 billion stopped from being transferred. The lesson here? Always be cautious and verify any communication claiming to be from the ATO and if you’re unsure, ask a licensed tax professional!
Horrible dad joke, but a good reminder to not get your financial or tax advice from social media!
Now, more than ever, its important for your business to ensure that your GST tracking on expenses is airtight. Accurate GST tracking not only helps your business comply with tax regulations but also enables you to claim those GST tax credits correctly.
GST tax credits, also known as input tax credits, are credits that businesses can claim for the GST included in the price of goods and services they buy for their business.
Businesses can benefit from GST tax credits by reducing the amount of GST they owe or claiming a refund for any excess credits. This can help businesses improve cash flow and reduce the overall cost of goods and services purchased (understand GST tax credits in more detail).
But there's a catch. Attempting to manually manage your business expenses and tracking GST accurately is a bit like trying to juggle flaming torches – it's risky and can end in you getting burnt! Manual processes are prone to errors, which can lead to time-consuming work for your finance and admin employees.
Not to mention the increased risk of non-compliance with tax regulations, which can result in penalties and fines.
Yikes.
Automating your expense management can significantly enhance the accuracy of GST tracking. Budgetly auto extracts the GST from every receipt uploaded via the app, for highly accurate and fast GST tracking.
Budgetly allows you to empower your employees to easily upload their expense receipts and automates expense categorisation, ensuring that all expenses are accurately recorded and GST is tracked correctly.
By integrating with Xero or your accounting software, Budgetly automates the GST extraction process, making it faster and easier; plus it helps your business claim tax credits more efficiently.
“We’ve saved twenty one thousand dollars because now, everything goes through Budgetly."Stanley Tang, Finance Manager, Connecting Families |
If your business uses another expense management solution that isn’t Budgetly, run a quick audit on if they can do the above for you. If you’re paying money for software that manages expenses, the above should be a given feature too.
So, remember, airtight tracking of GST on business expenses is crucial for compliance with tax regulations and claiming GST tax credits correctly. By following the strategies mentioned above and utilising automation solutions like Budgetly, your business can improve its GST tracking practices and avoid potential errors and penalties.
This is article not taxation advice. If you require taxation advice, please see a licensed professional.
If you’d like to eliminate time-consuming admin work with instant budget allocation, automatic GST extraction and real-time reporting, then schedule a demo with us today, or watch a 10-minute recorded demo.