An accurate record keeping is essential for small businesses. Maintaining good record will help you manage your cash flow and you can make business decisions based on that. It is your responsibility by law to keep clear records in your business. There are number of reasons why you should keep good records, here are some of them;
- Be easier to meet your tax obligation at the end of the year.
- Show you how your business performing.
- Help you make sound decisions.
- Help you run your business smoothly and efficiently.
- Help to expand your business by taking improvement actions.
This is legal requirement and you must keep for at least five years and may be longer if your business made loss in first few years. Poor recordkeeping is one of the reasons for the failure of small business.
What business records you need to keep?
Income records: You must record all the income from your business sale including cash sales. For example Sales invoices, Cash register tape etc.
Expenses records: You must record all the expenses for your business. If any expense that is not 100% for the business you must apportion it. Keep receipts, tax invoices, dairy records etc.
Bank account records: Documents you receive from bank for example bank statements, loan statement and deposit books.
Year-end records: You must record your debtors and creditors and maintain asset register if you bought one during the year.
GST records: All of the above will help you meet tax obligation including preparations of Business Activity Statement. You can hire Tax agent/BAS agent to do this job for your business.
We at Mas Tax Accountants Cranbourne can help you keep proper records for your business. We provide Accounting and Bookkeeping service In Lyndhurst, Lynbrook, Hallam, Berwick, Officer, Skye, Carrum Downs, Pakenham, and Pearcedale. We also offer packages to our small business clients to maintain record keeping and tax obligation.