WHAT ARE THE COMMON MISTAKES YOU SHOULD AVOID?

To help you meet your tax obligations, we have identified common mistakes made by restaurant, cafe and other catering businesses.

The table below shows how these mistakes can be avoided.

  • Leaving the cash register open and not recording every transaction

  • Close the cash register after each transaction and record each transaction through the cash register

  • Failing to make and keep sales records at regular intervals if not using a cash register

  • Update the sales records regularly, for example, at the end of each shift of day

  • Not conducting daily sales reconciliations

  • Reconcile “Z” total and cash in register, taking into account any cash taken for business or personal use

  • Not updating the cash receipts books

  • Transfer daily sales total into cash receipts book regularly

  • Paying wages and invoices from cash register

  • All cash taken from the register to pay wages and invoices must be recorded as takings in the cash receipts book

  • Claiming GST credits where the supplier is not registered for GST

  • Only claim GST credits when the invoice clearly states GST has been charged

  • Misclassifying sales as GST-free

  • Use GST food guide (NAT 3338) to classify products correctly and ensure staff are adequately trained

  • Failing to withhold tax from the payment to suppliers who do not have an Australian Business Number

  • If the total payment for goods or services is more than $75, excluding GST, withhold 46.5% of the payment and pay it to the Australian Taxation Office

  • Not updating the wage book regularly with ALL hours worked by each staff member

  • Ensure wage books record details such as: Name of the employees, Hours worked, Pay rate, Gross payment, Net payment, Amount withheld, and Superannuation contribution paid