How to keep accurate records within your business
One of the key responsibilities as a business owner is to keep accurate records. This ensures that your files and documents are always up to date - not only for tax time but also for compliance purposes and in the case of an audit.
Keeping good records allows you to monitor how your business is performing and means you can make sound business decisions at any time.
We know that running your business means you have a whole lot of other things to think about and record keeping may be low on the list, that’s why we’ve compiled this overview to help you keep accurate records for your business easily.
What do you need to keep a record of?
The critical stuff you need to keep track of in your business:
Your business records. This includes income, expenses, bank statements, GST information and any other expenses for a minimum of five years (some records will need to be kept for longer).
Cash and online (EFTPOS) transactions. This information must also be kept for a minimum of five years.
Valid GST purchase information
Documents relating to asset purchases such as property, shares and cryptocurrency
It is important to note that the information you keep must be detailed enough to be able to calculate and support any amount you claim on tax returns. Also, depending on the industry you operate in, you may have extra information you need to record for compliance and record-keeping. Our team can help you identify these.
How to keep better records
The OAS team make record keeping simple for you because we look after everything on your behalf, but we know that keeping accurate and easy to find records is sometimes an onerous task for business owners.
Here are some our simple tips that may help you:
Use an app or accounting software. Find something that allows you to take a picture of receipts and store this information securely online. This will make sure you always have a legible copy.
Store records electronically and have a backup. It’s a good idea to store your documents and records securely in the cloud. Your accounting software / application can do this or try something like Google Docs.
Work with a bookkeeper who will manage your record keeping for you! We make storing, accessing, and reporting on your documents simple. And it frees up time for you to focus on things that are more important.
As a business you have a lot of expenses to keep track of and we know record keeping isn’t easy.
If you seem to be spending too much time recording your expenses or if you can’t find the time – contact us and we’ll take care of it for you.