Australian small business owners feel overwhelmed by financial reporting obligations, according to a new study by American Express out today.
The Tax Time-Time is Money study found that over 60 percent of small business owners are primarily responsible for the preparation of their financial reporting and spend almost one Sunday a month or almost 60 hours a year going over their books.
The study also reveals that more than 40 percent of small business owners spend their evenings fulfilling financial reporting obligations and more than one-in-three small business owners undertake tax reporting on the weekend.
Only 17 percent of small business owners believe the Henry Tax Review will deliver simplified financial reporting and save time and money. An additional 83 percent of business owners believe there is still too much red tape and regulation attached to small business financial reporting.
According to Australian tax expert Adrian Raftery, AKA Mr Taxman, these statistics reveal the need to update the reporting process.
“Many small businesses are drowning in a sea of receipts and paperwork when it comes to compiling BAS and end of financial year reporting…(they) can find some respite by streamlining and automating reporting processes”.
A popular way to streamline the process is to have a dedicated business card that automatically collects and complies receipts.
This response is supported by the study, which found that an overwhelming 82 percent of small business owners would welcome a system that automatically recorded business transaction and reduced the time it took to complete their financial reporting.