Record keeping for businesses

Written on the 14 April 2014 by Macmillans Waller Fry - Accountants in Maitland

Maintaining good records will help businesses manage their cash flow and make sound business decisions. It will also ensure that businesses are meeting their tax obligations.

Keeping good records is essential for those in business and can potentially save a business significant time and money. Poor record keeping is often a key factor in the failure of businesses.

There are a number of reasons why businesses should be keeping good records of their transactions.

Good record keeping:

  •  makes it easier for businesses to meet their tax obligations
  • makes it easier to understand how the business is doing
  • helps with making good business decisions

Record keeping is a legal requirement. If businesses are not keeping the right records they can be liable to penalties.

The law states that records must be kept for a minimum of five years (non companies) and eight years for companies, and can be either on paper or stored electronically. Records must also be in English or a form that is easily converted.

It is a good idea to set aside some time each week to maintain the businesses records. This helps to prevent an overload of paperwork during tax time

The following business records are required to be kept; income tax records, income and sales records, year-end records, bank records, GST records, fuel tax records and employee and contractor records.

Author: Macmillans Waller Fry - Accountants in Maitland

 

Find the perfect employee for you

Picking the wrong employee after a long interview process ultimately results in wasted time and lost money for a business. A successful interview can often start before even meeting, as social networking sites such as LinkedIn are becoming an increasingly popular way to identify job candidates. T...
Read More...


Deduction rules for small businesses

Spending on capital assets usually cannot be deducted immediately. Instead, small businesses claim the costs over time in accordance with the asset’s depreciation. There are many different processes that businesses can employ to make claims on their assets. For small businesses with lower-c...
Read More...

associations

 

 

Who we are

 

What we do

 

Macmillans - Accountants

Address:40 Church Street

Maitland NSW 2320

Phone:02 4933 4444

Fax:02 4933 7781

Email

 

Online PaymentContact Us