Make sure you’re asking your accountant the right tax questions
Monday, October 17, 2011/
By now you’ve probably heard the tragic tale of the collapse of renowned three-hat eatery Bilson’s Restaurant, owned by the masterful chef Tony Bilson.
If losing one of Sydney’s finest dining venues wasn’t bad enough, I was shocked to hear that the downfall of the business was due to a $500,000 payroll tax debt.
I hate payroll tax at the best of times, but when it comes between me and a long lunch I am even more incensed.
But then I read this story exploring some of the causes of the collapse. It appears Tony was relying on his accountant to be right across things like payroll tax and in the end, nobody paid enough attention to the fact this large bill was looming.
This is a crucial lesson for start-ups. While it is important to rely on experts such as a lawyer or an accountant, entrepreneurs must also personally stay right on top of important issues such as tax.
You don’t have to know the technicalities, but you must know the key questions to ask each quarter.
At what point will we need to start paying payroll tax? How much GST or payroll tax will we owe? When are the bills due? Are we right to cover the bills? Do we need to start working harder on tax planning?
Failure to watch these issues can be fatal.
Get it done – today!