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  • Compare your business now

    The small business benchmarks are financial ranges to help compare your business's performance against others in your industry.

    Step 1: Have your information/figures ready

    Step 2: Start calculating

    • download the ATO app, go to Business and select the Business performance check

    OR

    Tips

    • Choose the right industry code for your business. Use the business industry code tool.
    • If you are new to business, benchmarks can be used as a guide to help you set up and understand industry standards.
    • If you operate more than one business, calculate each of them separately and indicate this on your income tax return.
    • Assess your business performance against the benchmarks at least once a year before lodging your tax return to see how your business is tracking.

    Step 3: Check your results and take action if required

    Consider what it means if you're above or below the benchmarks. Being outside the benchmark ratio doesn't mean something is wrong.

    If you find your business is outside the benchmark range for your industry, we recommend you:

    • review how you keep your records (some of your income and expenses may not be included)
    • check that your income and expenses in your tax returns and activity statements are correct.

    If you identify mistakes after a tax return was lodged, it's easy to fix – just provide the correct information by making a voluntary disclosure.

    If your business is inside the benchmark range for your industry you:

    • generally don't need to do anything else
    • can identify where adjustments can be made to costs and expenses and consider profit margins to improve your business performance
    • can consider if your record keeping or business operations need any improvement to increase profitability and performance.

    Other tools

    Benchmarks are only part of the analysis of your business. You can also use the:

    If you need more help to understand how to improve your business performance, consult a business adviser or tax professional.

    See also:

    Last modified: 27 Mar 2017QC 47935