Record keeping: why it’s necessary and ways to make it easier.

As a general rule, the ATO requires you to keep records for all business related income and expense activities for at least 5 years. This means that if the ATO decides to review or audit your business, you must be able to prove that you have actually spent the money you have claimed as a deduction.

It’s important to keep your records organised and up to date, so that if you are ever required to produce a specific invoice, bill or receipt, you can quickly and easily locate it.

Good record keeping can also help to identify fraud or loss, make it simpler and easier to file your taxes, and ensure you stay in compliance with any industry specific rules or regulations.

Our number one recommendation to all small business owners is to use an online digital document storage system. Filing cabinets and archive boxes are long past their use by date. By storing your receipts digitally you can easily access them from any computer and never have to worry about losing anything.

For help with your bookkeeping or business needs, contact us today.

Disclaimer

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided having regard to your objectives, financial situation and needs.