Being audited by ‘the tax man’ can be quite stressful, particularly if you are not organised. This is especially true in Australia. It is important that you research carefully what is required of you and have that information prepared to go through the audit process as quickly as possible. Organising your documentation in advance is vital for a successful review. If you are worried that you will be audited in Australia, consider these ways to best prepare yourself.
End-of-month reporting
Taking the time to be sure all your transactions are recorded is vital prior to an audit. If you leave this to the last minute, you will have a stressful situation ahead of you. Completing your reporting at the end of each month will keep your transactions organised and easy to present to your auditor.
Assemble an audit journal
An audit journal will serve you well if you keep at it throughout the year. Include any new contracts or company policies that will help you stay organised when it is time to meet with your assessor. This will greatly reduce the stress of finding every key piece of documentation that they may be looking for on short notice.
Manage when your audit occurs
Be realistic about your schedule and when you can be audited with minimal stress. You can control when the appointment is so that you have time to speak to key employees to find the proper information. If you give yourself a couple of extra days or even weeks, you will be better prepared for your appointment.
Ask questions
There is a great deal of fear that surrounds the process of being audited. It is important to keep a line of communication with your assessor. Don’t be afraid to ask them questions about issues you aren’t too sure about. It is better to ask queries during the audit than to provide incorrect information and have problems later.
Have auditors meet your board of directors
Having your auditors meet your Board of Executives is a nice idea to keep open communication occurring. This will show the auditor that you are committed to transparency. In turn, it will show the board that you are having an outside source review certain aspect of the company’s transactions. If need be, the members of your board will be able to ask pertinent questions related to their concerns, which will put their minds at ease.
Final remarks
Knowing the best ways to prepare for an audit in Australia is important for your company’s ultimate success. The main way to prepare yourself for one, is to be organised and practice transparency with your required documentation. By keeping everything above board and organised, you will be able to have a successful appointment with your assessor and move on to your next business project with ease.
If you’re looking for a bookkeeper to get all of your finances in order, or an accountant to look over your financial records, contact the highly skilled accounting team at IQ Accountants on 5576 0011. We can analyse data, put together your financial reports and budgets, accounting records, and of course do your tax returns for you.
