Business Benchmarks: How does your business compare?
Category : Practice Updates
The ATO have recently updated their Small business benchmarks. The benchmarks now contain 2012-13 financial year data compiled from income tax returns and business activity statements.
Small business benchmarks are financial ratios that can help you compare your business performance against other businesses in your industry. You can use them to work out where adjustments to costs and expenses can be made to improve your performance.
After you calculate your benchmarks, you might be above or below the range for your business turnover in your industry. If you have included all your income there may be reasons for this difference. For example you could have higher costs or lower selling prices than others in the industry.
We recommend you review your business performance against the benchmarks annually. In doing so, you can see how your business compares with other businesses in your industry.
When the ATO see a business outside of the benchmarks it indicates something may be unusual and it could prompt them to ask for further information.
For assistance with checking your business performance please contact our office. Or you can check your business performance with the Small business benchmarks information on the ATO website.
Source: Australian Taxation Office