accountant Toongabbie

If you are familiar with the tax system, you might be aware that there’s a tax-free threshold. And any income below that level is not taxable. But can you just get away with it without lodging a return? While not filing a tax return for taxable income can attract consequences, let’s find if the same applies to non-taxable income earners.

What to do in case of less than taxable income?

Let’s consider you aren’t earning more than $18200 per year, the tax-free threshold. But how would the ATO know? So, if you don’t notify the ATO, you might be considered a defaulter for not filing a return. The solution to this is non-lodgement advice. You should submit this to the ATO, informing about your less income.

The case of not submitting the tax lodgement

Any failure to submit the tax return or tax lodgement attracts a consequence. In this case, it will be a $210 penalty and it could go to as high as five times the amount ($1050). However, you can get a waiver for certain situations like a serious illness or a natural calamity. Again, failing to revert to the penalty might attract higher penalties or even legal action.

Can I be prosecuted?

That is an option. Your past record and response to a notice from the ATO can be used to decide if you can be prosecuted.

Similarly, there are certain consequences for lodging the tax return late. But it’s advised to submit your taxes on time always. And you can get a Toongabbie accountant to help you with the same.

Castle Hill accountant

Financial statements are records of your business expenses, revenue, and everything that involves monetary transactions. These records are snapshots of a company’s financial health. Without this, you might not be able to monitor and project future finances, revenue, or plan for better earning. However, financial statements should be processed in a particular order for the best results. Let’s take a look at what statements are important for business success.

  • Balance Sheet: It monitors the financial progress over time. The balance sheet contains liabilities, equity, and assets. It is a significant indicator of the financial health of your company. The balance sheet is a crucial thing that helps you make financial decisions.
  • Cash Flow Statement: The outgoing and incoming cash record of your business is known as a cash flow statement. Finances, investments, and operations are the 3 main cash flow management components. It just tracks the cash that your business has on hand. Lenders, vendors, and investors can use cash flow management to figure out whether your business has a great investment or not.
  • Statement of Retained Earnings: It is also referred to as the owner’s equity statement. It is the profit amount that you can use to make investments or pay off your liabilities. You can use it independently or as a balance sheet’s part. If this statement is positive, then you have additional money to pay off your debts or buy assets.
  • Income Statement: The income statement records your business’s profit and loss over a particular time. You can utilize it to summarize the operations of your business for a particular period that can be quarterly, monthly, etc. It demonstrates your net loss of income to you.

Since doing these statements right is required, a trained accountant in Castle Hill can help.