Does your accountant benchmark review your figures? If not, get a new accountant!
Good accountants will use the latest available data to benchmark your business performance against other similar small business clients. This benchmark data comes from various sources and one of the most comprehensive is provided by the ATO covering over 1.3 small businesses using lodged tax returns and business activity statements.
By seeing how other business with similar turnover are performing in key metrics (COGS Margins, Rent to Sales, Wages to Sales, Total operating expenses to Sales etc.) we can identify areas that need improvement. Using these metrics, we have successfully helped clients change their pricing and wage structure to improve their business profitability in a sustainable long-term manner.
Also, if a small business is inside the benchmark range for their industry and the ATO hasn’t received any extra information that may cause concern, then you can be confident that you probably won’t hear from the ATO.
At Trinity Accountants we are passionate about helping business owners improve their business and find that benchmarking is a key tool.
Call us today to arrange a free consultation.