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Common Tax Mistakes You Should Avoid

WHAT ARE THE COMMON MISTAKES YOU SHOULD AVOID?

To help you meet your tax obligations, we have identified common mistakes made by restaurant, cafe and other catering businesses.

Below you can see how these mistakes can be avoided by doing things the Right Way, instead of the Wrong Way.

 

Leaving the cash register open and not recording every transaction
Close the cash register after each transaction and record each transaction through the cash register

 

Failing to make and keep sales records at regular intervals if not using a cash register
Update the sales records regularly, for example, at the end of each shift of day

 

Not conducting daily sales reconciliations
Reconcile “Z” total and cash in register, taking into account any cash taken for business or personal use

 

Not updating the cash receipts books
Transfer daily sales total into cash receipts book regularly

 

Paying wages and invoices from cash register
All cash taken from the register to pay wages and invoices must be recorded as takings in the cash receipts book

 

Claiming GST credits where the supplier is not registered for GST
Only claim GST credits when the invoice clearly states GST has been charged

 

Misclassifying sales as GST-free
Use GST food guide (NAT 3338) to classify products correctly and ensure staff are adequately trained

 

Failing to withhold tax from the payment to suppliers who do not have an Australian Business Number
If the total payment for goods or services is more than $75, excluding GST, withhold 46.5% of the payment and pay it to the Australian Taxation Office

 

Not updating the wage book regularly with ALL hours worked by each staff member
Ensure wage books record details such as: Name of the employees, Hours worked, Pay rate, Gross payment, Net payment, Amount withheld, and Superannuation contribution paid

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