Small businesses and their employees needed to be on high alert for tax evaders after more than $7.2 million was stolen from personal computers last July, a software specialist has said.
SAP Concur’s managing director of small and medium businesses, Fabian Calle, said that while companies focus on maximizing their deductions, scammers prey on them and their employees.
“Unfortunately, EOFY is also like Christmas for unscrupulous actors who take advantage of business owners and their employees through highly targeted tax scams,” Calle said.
“With many employees now working part-time or full-time from home offices, this creates a significant risk for Australian businesses.”
After the tumultuous years past, Mr Calle said companies needed to make sure they were on top of their tax returns, especially with the post-pandemic ATO mounting scrutiny.
“Australian businesses have been doing the rough stuff over the past few years with the combined impacts of sustained business disruptions caused by COVID-19, continued market volatility and flooding,” he said.
“Many organizations are doing their best to keep the doors open and ATO compliance is a necessary factor, even though company resources may be stretched at this time.
“The ATO’s increased control over record keeping, work-related expenses, income from rental property and capital gains means that the EOFY 2022 process is likely to be longer and more complex for most organizations compared to to previous years.”
SAP Concur has released a 2022 EOFY checklist designed to help companies with their year-end processes.
The checklist highlights the need to review record-keeping duties, ensure that business financial information complies with applicable tax requirements, and be aware of tax scams that target small and medium-sized businesses.
The checklist also provides information on how companies can jump-start fiscal year 2023 by looking at their big picture and determining where automation can improve efficiency.
Calle said embracing automation will help businesses recover from the pandemic faster and grow in the future.
“Companies that can redefine processes and improve operational efficiency through automation are likely to recover and scale to growth much faster than those that continue to rely on manual processes,” Ms. Call.
“EOFY should be as simple as any other report a company has to produce and instead provide the direction needed to drive growth in the coming financial year. Automation will deliver more and more as cloud capabilities continue to evolve.”