In honor of Scam Awareness Week, please find five tips and resources to help you, and your small business stay vigilant against scams and boost your cybersecurity. Read More…
If you are interested in improving your business performance, benchmarks can help focus attention on areas of strength as well as those that could be improved .
Each year the ATO publishes Small Business Benchmarks - industry-based data to highlight specific ratios of financial and other types of performance.
For example, you can compare your cost of sales to turnover, total expenses to turnover, or labour cost to turnover. Comparing to average data gives you an idea of how your business performs compared to others in your industry.
It's no problem if your ratios are different – but it can be a helpful starting place to look if you want to improve financial performance or reduce costs. If your ratios are very different from the ATO’s, then it could be worth diving deeper into your financial reports to see if you have problems that can be addressed. For example, a hospitality business might realise that its food cost is much higher than average and then take action to change suppliers and manage wastage.
The ATO benchmarks are based on your business industry code used in your activity statements and tax returns. If you’re not sure what industry you fall under, check the ATO Business industry code tool to find the correct code for your business.
To start comparing your business, you’ll need some information from your accounting software financial reports.
Once you have these totals, either from your software or your last tax return, you can compare your figures to the ATO benchmarks.
If you have further questions and would like help to analyse your business performance, get in touch with your WDF team member on 6921 5444. We would be happy to help and start discussing areas you can target to increase profitability, reduce costs and streamline operations.
Accountant
WDF Accounting and Advisory | Accountants Wagga | Your partners in business
Providing carefully tailored accounting solutions in business advisory, tax compliance, bookkeeping, Self-Managed Super funds, and more.
In honor of Scam Awareness Week, please find five tips and resources to help you, and your small business stay vigilant against scams and boost your cybersecurity. Read More…
6 Powerful Reasons to Watch your Financial Reports
Making time to look over your financial reports each month is an important task for any business owner. We have 6 reasons why we recommend you should start. Read More…
Are you meeting your SMSF Governance Requirements?
Opting for a self-managed superannuation fund (SMSF) may give you more control over your investment strategy and allow you to be more agile as a fund in the market Read More…