The ATO have a new reporting requirement for businesses in the building and construction industry. These businesses will need to report to the ATO the total payments they make to each contractor for building and construction services each year. The first report is due from 21 July 2013 for reportable payments made to contractors from 1 July 2012. For all the details, head on over to the ATO website.
Xero will make it easy to generate the report in time for your reporting obligations next year – all you have to do is use dedicated accounts when creating relevant spend money or accounts payable transactions. You may already have account codes for assigning contractor expenses, if not you can easily create one. For example, you could create an account called “476 – Contractors – Reportable Payments”.
Xero will use these codes and a new flag that you’ll be able to add to contacts to drive a new report that we’ll release in time for July 2013.
Easy as that.