The importance of record keeping

importance of record keeping

Record keeping made simple

The ATO requires that the relevant records exist to support all business transactions relating to your tax and superannuation affairs as you start, run, sell, change or close your business. It is a business owner’s responsibility to maintain and store accurate records for all financial transactions. To claim a business deduction on your tax return or activity statements, you must have a valid tax invoice for goods and services purchased for the business.

Good record keeping is the backbone of bookkeeping and accounts management. It will assist you to meet your compliance obligations and provide verification for all your business transactions.

Applying systematic record keeping practices makes it so much easier to run your business, as you will not be wasting time trying to find documents when you need them—whether that’s for yourself, your bookkeeper or your tax agent. Having a practical storage solution makes it easier. Your storage solution can be physical or digital, as long as it is secure and easy to use. (That’s not a shoe box! Yes, we have seen these in use…) For MYOB and Xero users, there is the functionality to attach one or more documents to every transaction, making the verification immediate.

If you need assistance with record keeping for your business, contact us at Rise Bookkeeping & Administration today.