Record-keeping tips

Record-keeping is an important aspect of running a business. As a business owner you are legally obligated to keep records of all transactions that relate, but is not limited to, tax, super and employer obligations. There may be legal and financial penalties if your business does not meet the requirements set out for record keeping.

The ATO have put together 5 key rules for record-keeping for your business, to ensure you meet these obligations and the ATO and other legal requirements surrounding record-keeping. 

1.     You need to keep all records related to starting, running, changing, and selling or closing your business that are relevant to your tax and super affairs. 

2.    The relevant information in your records must not be changed (for example, by using electronic sales suppression tools) and must be stored in a way that protects the information from being changed or the record from being damaged. 

3.    Records must be for a minimum of 5 years,

4.    Records must be accessible is you are ever asked to provide the (example, in the case of an audit)

5.     Your records must be in English or able to be easily converted to English

ATO Record-keeping tips

To assist business owners that ATO have a number of handy tips that are based around some of the most common errors that are seen. These include but are not limited to:

·         Keep record of all transactions, both cash and electronic

·         Regularly reconcile your cash and EFTPOS sales and bank accounts

·         Investigate any discrepancies as soon as you notice them 

·         Ensure you are accurately splitting and recording expenses that have business and private use portions

·         If you use trading stock for private purposes remember to account for this as stock sold,

For more record-keeping tips visit the ATO.