Tips for keeping good records
Good record keeping is critical to business success
Tips for keeping good records:
- Keep all business records including income, expenses, bank and other goods and services tax (GST) records for five years (although some records need to be kept longer)
- Records must contain enough information to calculate and support amounts claimed on activity statements and tax returns.
- Business records need to include all cash, online, EFTPOS, bank statements, credit and debit card transactions.
- Check the tax invoices received for purchases that include GST are valid.
- Keep records that show when business purchases were used for private purposes – this will help work out the business portion that can be claimed as a deduction.
- Keep business records separate from personal records to avoid confusion.
- Take pictures of paper receipts to avoid faded records.
- Store a copy of all records electronically and have a backup system in place, where possible.
- If changes were made to the record keeping software used during the year, check that all information transferred over correctly.
For all your bookkeeping and accounting obligations Skybridge Financial is your perfect solution!