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6 Tips for great Business Record Keeping

Posted by   |   August 31st, 2014   |   Categories: Business Fundamentals

The following list is very important to consider if you are

  • thinking of starting a business
  • The owner and responsible for keeping the business records
  • responsible for managing the records of small businesses; for example, you are the bookkeeper or a tax agent

Tip 1  Legal Requirement

 

black-boardIt’s a legal requirement that you must keep good records. The law states you must keep

business records for

– for 7 years after they have been prepared or the transaction completed, whichever occurs latest

– in English or a type of form that can be accessed and understood to determine the amount of tax you need to pay

– Capital Gains records for assets that depreciate over long periods of time

– You have a choice whether to store records in either paper or electronic form

– It can be as simple as using an exercise book or commercial cash book that can be purchased from a newsagent or stationery store.

– If you choose the electronic form, you need to be familiar with accounting principles and how the software calculates and treats the information

Tip 2  Sales records

– sales invoices, including tax invoices

– sales receipts

– credit card statements

– cash register tapes

– bank deposit books and account statements

Tip 3  Purchases/expenses records

– Bills or Supplier invoices, including tax invoices

– purchase receipts which include an ABN

– cheque butts and bank account statements

– credit card statements

– records showing how you worked out any private use of something you purchased

Tip 4  Records relating to payments made to your employees

– tax file number declarations and withholding declarations

– withholding variation notices

– worker payment records

– PAYG payment summaries

– annual reports

– superannuation records

– records of any fringe benefits provided

Tip 5  PAYG Withholding records

– records of any amounts withheld from payments where no ABN was quoted

– a copy of any PAYG withholding voluntary agreements

– records of voluntary agreement payments

– PAYG payment summaries

– PAYG payment summary – employment termination payments

– annual reports

Tip 6  Records relating to your fuel tax credits

– records of fuel acquired

– records of eligible and ineligible fuel use

– records of claim calculations

– records of any loss, sale or disposal of fuel!

 

Reference: Australian Taxation Office

If you need further information or would like assistance with your bookkeeping,

please visit myobtrainer.com.au

Get Started today, get in contact with us now to discuss your MYOB Training needs no obligation
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