Using business money for private purposes: 2 steps to take

Cracking the Code: Using Business Funds for Personal Use? Navigate the path of using business funds for personal use. Stay compliant and in control of your finances!

If you use money or assets from your company or trust for private purposes and don’t account for the transactions correctly, there can be tax consequences. That’s why it’s important to get it right.

Business money and assets you take or use for private purposes can include:

If you’ve used business money or assets from a company or trust for private purposes, follow these 2 simple steps to avoid unintended tax consequences:

  1. Keep accurate records of the transactions.
  2. Account for the transactions in the company or trust tax return and your individual tax return, if applicable.

Remember, there are different reporting and record-keeping requirements for each type of transaction, so make sure you know how to keep accurate records to suit your circumstances.

You can also practise good record-keeping habits by regularly cross-checking your records against the original documents so you can fix mistakes earlier and monitor your business’s cashflow.

Take a look at these examples to check if you’re reporting business money or assets used for private purposes correctly.

Our team are here to help you with your tax, but you’re responsible for keeping business records and what you claim in your tax returns.

If you need more information this tax time, download and print this handy fact sheet (PDF, 225KB)This link will download a file.


Source: ATO Newsroom

Share On:

Other News

All the latest from our small business tax champions.

Why you landed here

Phillip Anthony Partners joins Paris Financial East Melbourne

We are pleased to share that the team at Phillip Anthony Partners have merged with Paris Financial. Our team at Paris Financial can provide you with a large range of quality financial services with over 65 people located across two convenient locations in Blackburn and East Melbourne.

Paris Financial shares the same philosophy as Phillip Anthony Partners of providing a value focused and high quality service for each of our clients. We look forward to assisting with your accounting needs.