An extreme scenario, but more common than you would think. You get behind in entering one receipt, then its two, next thing you know the end of the quarter rolls around and you haven’t entered anything for 3 months. You get one BAS behind then its two, three and four and then the situation spirals out of control. The ATO letters start arriving, firstly advising you of the penalties they are imposing, then the letters about what legal action they are going to take should the lodgements not be bought up to date.
Before you know it, you’ve racked up several thousand dollars in ATO fines and penalties, and the ATO is taking legal action to shut down your business and personally bankrupt you.
Regular bookkeeping on a weekly or fortnightly basis by someone qualified and experienced just seems like a much simpler path to have taken, all that time and money ago.
If you are behind in your bookkeeping or want to set up a bookkeeeping system it is never to late to get back on track.