AS the end of financial year nears, Australian small business owners report they are working overtime to fulfil their tax reporting obligations, spending the equivalent of one Sunday a month, or almost 60 hours a year, going over their books.
The study by American Express, undertaken by Galaxy Research, found more than 40 per cent of small business owners spend their evenings fulfilling financial reporting obligations, with more than one-in-three undertaking tax reporting at the weekend.
“Small business owners are sacrificing almost one Sunday a month to fulfil their tax reporting obligations, taking time away from working on other areas of their business or relaxing with family and friends,” American Express head of small business services Australia, Jason Fryer said.
Only 17 per cent of small business owners who responded to the survey believe the Henry tax review will deliver simplified financial reporting and save time and money. An overwhelming 83 per cent of business owners believe there is still too much red tape and regulation attached to small business financial reporting.
“This report reveals small business owners spend almost two working days preparing paperwork for end-of-year tax reporting,” taxation expert Adrian Raftery said of the report’s findings.
“Many Australian businesses are drowning in a sea of receipts and paperwork when it comes to compiling BAS and end of financial year reporting. The survey revealed the average small business processes more than 100 transactions every quarter, which means keeping track of over 400 receipts a year.
“Small businesses can find some respite by streamlining and automating reporting processes.
“While small business owners can’t reduce the level of reporting that is required, they can reduce the time taken to compile statements. While encouraging that one-in-two small businesses use accounting package software, it is alarming that one-in-five still uses a written ledger.”
