Small Business Record Keeping
Keeping clean and effective records is essential for a successful business. Staying on top of your records can improve your businesses cash flow and ability to meet financial obligations. Keeping effective records puts you in the best position to make wise business decisions that will grow your business.
Not only is it benefical for small businesses to keep good records, it is also a legal requirement. You must keep business records for five years, otherwise you can incur severe penalties.
If you are worried about your current record keeping, we suggest purchasing a cash payments and a cash receipts column book. This will allow you to break down all your expenses by categories, and see exactly where your money is going.
When keeping records, we strongly recomend our clients to view the ATO Small Business Performance Benchmarks. These benchmarks look at key finanical ratios for businesses in specific industries. To view the benchmarks, click below.
The retail industry is one that comes under heavy scrutiny by the ATO, largely due to income recording issues. Whether your business uses a Cash Register or a Receipts Book, we strongly recommend you read and adhere to the record keeping requirements set out by the ATO. The requirements can be seen by clicking here
Individual Tax Time Checklist
We recommend our clients to use our Tax Time Checklist to make sure you have all the documents we require to complete your tax returns. You can view the checklist in a pdf below.
Cash Payment Books
Often small business owners are overwhelmed by record keeping, or find computer programs such as MYOB and Xero too complicated or not suitable to their needs.
If this is the case, we recommend the use of DDI Office Income and Expenditure Books. The design of these books makes the task of record keeping extremely simple. A snippet of the book design can be seen below.
We recommend purchasing two books. One for income and one for expenses.
You can purchase DDI Office Books at our office.
DDI Office column book