If you've engaged with Standard Ledger to prepare your tax return, then in advance of the ATO due dates, we will:
- Review all profit and loss and balance sheet transactions for the year.
- If you are doing your own bookkeeping you have the responsibility for entering / reconciling transactions including any specific account allocations. While we do our best in reviewing transactions, as we're not involved in your business regularly we may not always be close enough to things to precisely pick up the correct allocations on profit and loss and balance sheet.
- We may need to prepare journals, for example depreciation, to correctly reflect balance sheet and profit and loss, and will seek confirmation from you before posting.
- In Xero we will do our best to align the accounts in Xero to reflect the company tax return.
- This may include providing reconciling items from the ATO Portal to your tax balances in your company tax return.
- This may also include providing the amount of GST (payable or refund) and/or employee PAYG payable and/or any relevant PAYG income tax instalments payment, as well as any rounding to reflect the whole dollar amount payable to the ATO
- We will provide a tax reconciliation of adjustment we’ve made between your Xero accounts and the tax return, if any.
- We will also provide you an estimate of tax payable or refundable amount.
- Once we’ve prepared the return for completion we will send the tax return to you for review and to electronically sign / approve us to lodge on your behalf - this is also your "trigger" / reminder to pay any amounts owing.
- In Xero we will then either:
- raise a Bill (with the ATO supplier) for net payments owing; or
- raise a "sales" invoice (with the ATO "customer") for net refunds owing, in the case of an R&D refund.
- these will include line details for for the amount of tax (payable or refund) as well as any rounding to reflect the whole dollar amount payable to the ATO
- to prevent any accidental / retrospective changes in prior period that may affect any submitted tax returns we will also "lock the period" as at the end of the financial year.
- Along with your tax return, we also prepare a Special Purpose Financial Report (SPFR).
- These reports are compliant with Chartered Accountants Australia and New Zealand Special Purpose Financial Reporting (CAANZ SPFR), and Certified Practising Accountants in Australia.
- The SPFR is prepared for the purposes of sending them to decision makers (owners, financiers etc) and taxation authorities to provide a full and accurate financial account of the activities during the period.
- See Sample Report as an example - we can customise the SPFR to your needs as well, although additional fees will apply.
Note: It is your responsibility to monitor and pay the ATO any amounts that may be owing. You may regard the electronic signature request as a reminder to pay. To pay any amounts payable please refer to the ATO payment options (incl EFT Codes, BPAY) which are shown via your tax portal when we ask you to electronically sign your BAS to approve final lodgement (you may wish to read our eSigning FAQ for more information).
Note: If in future, you need to access your signed tax return you can access this by logging back into https://portal.xero.com/
- electronically signing your tax / BAS returns [Standard Ledger article]