Published on : Monday, December 23, 2013
Businesses in this industry manufacture and install cabinets for kitchens, bathrooms, wardrobes and shop fittings. These performance benchmarks are developed using information reported on income tax returns and activity statements for the 2010–11 year. Performance benchmarks are updated annually.
To review a comparison of previous years benchmarks, refer to previous year. These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in an industry.
The key benchmark ratio for this industry is cost of sales to turnover. This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report cost of sales or only report a small amount, total expenses to turnover can be used to predict turnover.
Businesses operating outside the key benchmark may be contacted by the ATO. During an audit, if a business does not have records to support their reported income and expenses, the ATO may use benchmarks and other information available to assess the profits of the business.
Tags: ATO, bathrooms, benchmark, benchmark ratio, industry manufacture, kitchens, wardrobes and shop fittings
|
