Are you all over business record management?
All prepared if the tax office knocks on your door?
ATO says:
As the business owner, you are accountable for understanding your record-keeping obligations. If you use a registered tax or BAS agent to manage your records, you still retain primary accountability.
Ensure you understand the record-keeping requirements for your business and make it a priority to keep accurate and complete records. By doing so, you can avoid the various penalties that may apply.
The following tips can help you get it right. They are based on common record-keeping errors we see:
– Keep accurate records of all cash and electronic transactions.
– Complete regular reconciliations of your sales (both cash and EFTPOS) and enter the amounts into your main business accounting software system. Depending on your business, this may be daily, weekly or monthly.
– Where business expenses have both business and private use portions, work out and record the business portion accurately.
– Ensure you have sufficient records to substantiate business expenses claimed as tax deductions.
– Don’t use estimates to prepare your tax returns and business activity statements (BAS). Ensure you have complete and accurate records to substantiate the information you include in them.
– Be accurate in how you use your source records to work out the amount you claim for the research and development tax offset, if this is applicable to your business.
If you aren’t sure how this information applies to your situation, ask your registered tax or BAS agent for help.
We’re registered BAS agents, we can help setup systems and apps to get your records under control.
(we can also help you convert old records to digital so you can ditch the filing cabinet)
