One of the most important responsibilities of a business owner is to keep accurate records and ensure that your files and documents are all updated – not just for tax time, but for the longer term in the event of an audit, and also for compliance.
Keeping good records will help you keep track of how your business is performing and not worry when the EOFY rolls around. It’s actually quite simple, and yet there are so many business owners who come to us who are concerned about the incompleteness of their data! Running a business means thinking about a lot of other things – not just record keeping – and we wanted to help make this process easier.
At Numbers pro, we help your business perform in the best possible way – that’s why we’ve written this short piece to explain some ways to keep accurate records for your business.
What should you keep a record of?
Before we get into the how, we thought we would discuss it a bit. Here’s a list of the critical things to keep track of in your business:
Your company details. This includes income, expenses, bank statements, GST information and all other expenses for a minimum of five years, but some data must be kept longer. Keep in mind that the information you keep must be detailed enough to calculate and support any amounts claimed on tax returns.
Information about cash and online / EFTPOS transactions. This information must also be kept for a minimum of five years.
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Valid GST Purchase Information.
Personal purchase information. This information is relevant to work out when you have used corporate funds that can be claimed. If you have a business card that is used for certain personal purchases, mark and keep this information.
Depending on your industry, there may also be additional information that you need to record for compliance and administration. At Numbers pro we can help you understand what this information is.
How to keep better records
One of the biggest bugbears for business owners is keeping accurate records and finding everything accessible and easy. At Numbers pro, we make record keeping easy because we manage everything on your behalf, but we also wanted to share some simple tips in the hope that it will help you streamline things.
Use an accounting / accounting app or software that allows you to take a photo of the receipts and store this information securely online. After all, a big problem is that receipts fade over time, which can lead to dramas with claims and reimbursements.
Store all your data electronically and make sure to back it up. It’s a good idea to store your document and records in the cloud, either through your accounting software / application, or with something like Google Docs.
Work with an accountant who takes care of your administration for you! We make it easy to store, access and report your documents and free up time to focus on things that are more important.
The bottom line is that keeping records is not easy; As a business, you have a lot of expenses and until an incredibly advanced data-tracking technology comes into play, where business and personal expenses are all records and are immediately updated to the ATO, we all have to do our part to keep up. to hold. But if you find yourself spending too much time recording expenses or just tired of having to do the work, get in touch and let us take care of it for you.
For more information visit website www.numberppro.com.au