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Record keeping is a crucial part of any business. In addition to meeting your tax and superannuation obligations, having good records will give you a more accurate picture of your business to help you understand how you are doing, so you can spot potential problems sooner rather than later. Here are 4 tips to make sure your record keeping is on point.
Keep accurate records of all business transactions to support your claims and make it easier for you, or your registered tax or BAS agent. For example:
Good record keeping doesn’t have to be hard; find a system that works for you. Get it right from the beginning to avoid making mistakes, but if you realise you have made a mistake you can still fix it. Here are some ways to make keeping records easy:
If you’re a sole trader with simple tax affairs, you can use the ATO app’s myDeductions tool to track your income and deductions throughout the year.
You can also use our Record keeping evaluation tool to review your record keeping practices from time to time and see if you’re still on the right track.
Remember, without proper records you may not be able to claim what you’re entitled to.
For more information, visit ato.gov.au/electronicrecordkeeping