Sample Letter – Accounts Letter
Your Financial Report & Income Tax Return(s)
We have attached your Financial Report, Income Tax Return(s) and associated documents for the past financial year. Please check all documents to satisfy yourself that they are correct and sign where indicated and return the following to our office –
- Electronic lodgment declaration(s)
- Our copy of the financial report
Include here other comments about the accounts if applicable
Your final tax position for the year is as follows –
| Name | Payable/Refund | Amount |
|---|---|---|
| Payable/Refund | $ | |
| Payable/Refund | $ | |
| Payable/Refund | $ | |
| Payable/Refund | $ | |
| Payable/Refund | $ |
We have enclosed an invoice covering our fee in attending to your work for the year. You will find our bank account details on the invoice for payment by Electronic Funds Transfer (EFT).
If you would like to discuss any of the above matters further, please contact our office
Your sign-off
Sample Letter – ATO Small Business Benchmarks
(attach Excel Report)
Comparing Your Return(s) With ATO Small Business Benchmarks
We have completed your financial report and income tax return for the past financial year and compared a number of your financial ratios with ATO expectations as shown in their small business benchmarks for your industry. Copies of these reports are enclosed for your information.
ATO benchmarks are key financial ratios developed from information provided by businesses on activity statements and tax returns. The ATO uses these benchmarks to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income. If a business does not have evidence to support their return, the ATO may use the benchmarks to determine the amount of income that has been omitted and make an audit adjustment.
Businesses reporting outside the benchmarks on their return may attract ATO attention. There may be reasons for this difference, such as higher costs or lower selling prices than others in the industry, but it may also be an indication that a business is not recording and paying tax on all of its transactions, especially cash transactions.
The key benchmark ratio nominated for each industry is the benchmark used by the ATO to identify businesses that may not be reporting some or all of their income. They regard this ratio as the key predictor of turnover and it may be used to make audit adjustments where the business has insufficient records to prove their figures. Importantly, businesses operating outside this ratio may be audited by the ATO.
If the business falls OUTSIDE the key benchmark
The enclosed Small Business Benchmark report shows that you will be at risk of an audit because your key benchmark ratio falls outside the expected range. The report also shows the expected turnover range ($) based on this ratio and how much your turnover varies from ATO expectations. There may well be valid reasons for your key ratio being outside ATO expectations and we are not inferring non-compliance with your income tax or GST obligations. Nevertheless, we recommend that you review the figures in the attached report before lodgment of your return and contact us to discuss your situation.
If the business falls WITHIN the key benchmark
You will be pleased to learn that your key benchmark ratio falls within the range of ATO expectations for your industry. We have attached a report showing details of your financial ratios compared with ATO benchmarks and suggest that you contact us if you would like more information about this report.
Your sign-off