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Todd Dewey

Consultant at Oakton

Member Since November 2012

North Sydney, NSW, 2065

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Experienced internal audit, Governance and financial management consultant

Todd Dewey answered this question

Will this business attract more scrutiny or tax audits from the ATO in future?

I am not an tax expert however I don't believe that the history of the previous owner would have any impact on your friend. Your friend will be lodging returns under her company / sole trader ACN or ABN. My wife has a hairdressing salon and she was audited by the ATO last year. My understanding is that they target specific industries on a cyclical basis, which may mean you will not be targeted for a while. The ATO run a range of fairly sophisticated tools to assess cash v credit sales, wages per employee, wages per sales volume etc...., however every salon is unique so it is difficult to generalise. In the end if you are upfront with what you declare, then as we were, you don't have an issue - my tip is to ensure your friend retains adequate comprehensive records in addition to bank statements, till receipts or appointment books were helpful for us.

Todd Dewey answered this question

Wendy Huang
Wendy Huang, Full Time Blogger and YouTuber at A Custom Blog in 4 Minutes

Starting a Business

Why did you start your business?

hi wendy, what a surprise to hear of a dissatisfied corporate accountant. having worked in accounting for 10 years, i started my own small business 10 years ago for four key reasons: 1. to fulfil a desire i had held since high school 2. to enable greater flexibility in work hours to spend more time with my family 3. financial independence 4. to be my own boss. after 3 years of ups and downs with moderate success, due to changed personal circumstances i returned to my former employer. however i still harbour a desire to do my own thing again someday, in the meantime my wife has her own small business so i can enjoy the ride with her.  

Todd Dewey answered this question

What accounting software package should a small business use?

Adam / Phil, could you provide some information regarding data security issues when using Cloud computing for applications such as Xero? I am currently involved in a number of small  enterprises which use either MYOB or Quickbooks - what are the pro and cons of going through an accounting firm like MBR as opposed to trying it alone?

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Todd Dewey answered this question

Will this business attract more scrutiny or tax audits from the ATO in future?

I am not an tax expert however I don't believe that the history of the previous owner would have any impact on your friend. Your friend will be lodging returns under her company / sole trader ACN or ABN. My wife has a hairdressing salon and she was audited by the ATO last year. My understanding is that they target specific industries on a cyclical basis, which may mean you will not be targeted for a while. The ATO run a range of fairly sophisticated tools to assess cash v credit sales, wages per employee, wages per sales volume etc...., however every salon is unique so it is difficult to generalise. In the end if you are upfront with what you declare, then as we were, you don't have an issue - my tip is to ensure your friend retains adequate comprehensive records in addition to bank statements, till receipts or appointment books were helpful for us.

Todd Dewey answered this question

Wendy Huang
Wendy Huang, Full Time Blogger and YouTuber at A Custom Blog in 4 Minutes

Starting a Business

Why did you start your business?

hi wendy, what a surprise to hear of a dissatisfied corporate accountant. having worked in accounting for 10 years, i started my own small business 10 years ago for four key reasons: 1. to fulfil a desire i had held since high school 2. to enable greater flexibility in work hours to spend more time with my family 3. financial independence 4. to be my own boss. after 3 years of ups and downs with moderate success, due to changed personal circumstances i returned to my former employer. however i still harbour a desire to do my own thing again someday, in the meantime my wife has her own small business so i can enjoy the ride with her.  

Todd Dewey answered this question

What accounting software package should a small business use?

Adam / Phil, could you provide some information regarding data security issues when using Cloud computing for applications such as Xero? I am currently involved in a number of small  enterprises which use either MYOB or Quickbooks - what are the pro and cons of going through an accounting firm like MBR as opposed to trying it alone?

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