Keeping track of Fringe Benefits Tax (FBT) records can often feel like navigating a bureaucratic maze.
However, new options are being introduced to streamline this process, allowing small businesses more flexibility and efficiency.
Let’s dive into these new record-keeping methods and how they can benefit your business.
Simplified record-keeping methods
The ATO now offers several simplified methods for managing FBT records, aimed at reducing the administrative burden on small businesses. These methods include:
- Electronic record-keeping:
- Digital solutions like apps and software can now store and manage FBT records.
- Benefits include easier data retrieval, reduced paper clutter, and better organisation.
- Single Touch Payroll (STP) integration:
- Integrating FBT records with STP reporting simplifies the process by combining payroll and benefits information.
- This method reduces duplication and streamlines compliance reporting.
- Simplified calculation methods:
- The ATO provides simplified methods for calculating FBT, such as using set rates for certain benefits, which can reduce the complexity of calculations.
Benefits of the new options
- Efficiency:
- Using digital tools and STP integration, businesses can save time and reduce manual data entry.
- Accuracy:
- Automated systems minimise errors, ensuring accurate record-keeping and reporting.
- Compliance:
- Simplified methods help businesses stay compliant with ATO requirements, avoiding potential penalties.
Implementation tips
- Choose the right tools:
- Select digital tools and software that best suit your business needs and integrate well with existing systems.
- Train your team:
- Ensure your staff is trained on new processes and tools to maximise efficiency and compliance.
- Regular review:
- Periodically review your record-keeping practices to ensure they remain effective and compliant with any updates to ATO guidelines.
The new options for keeping FBT records are intended to make life easier for small businesses
Adoption of these methods could enhance efficiency, accuracy, and compliance, allowing you to focus more on growing your business.
Want more tailored advice regarding FBT? Speak with one of our trusted advisers to learn more about this subject.
