Record Keeping Rules To Follow To Avoid Errors

Record Keeping Rules To Follow To Avoid Errors

Are you finding it hard to maintain your company records? All records kept properly throughout the year helps in satisfying your tax, superannuation, and payroll responsibilities. To make sure you won’t end up making errors or mistakes, always follow the record keeping rules that can help you get on the right track. Some of the most important ones include:

  • Keep accurate records of all cash and electronic transactions with expert bookkeeping services.
  • Reconcile cash and EFTPOS sales regularly and make sure all payment entries meet the bills generated.
  • Make sure every transaction or expense made is entered into the business account manually or by an accounting software system.
  • Update your record books with a proper daily, weekly or monthly routine.
  • Check for mistakes if calculations don’t add up as they should be.
  • For expenses that are for both business and private use, record only the business ones.
  • For any trading stock used, include the value in your business’s assessable income for accurate sales figures.
  • Make sure you have sufficient records of all business expenses you claimed as tax deductions.
  • When preparing your tax returns and business activity statements, avoid using estimates.
  • Make sure your records are correct and up to date to support your tax claims.
  • To calculate the research and development tax offset, use the source records accurately.
  • Keep all records safe for a minimum of five years, counting from the date you prepared.
  • Store records for a sufficient time to cover the conclusion of the review period.
  • If your business incurs a tax or capital loss, keep records related to how you determined it.
  • Keep precise and thorough records if you are paying contractors to do specific services on your behalf to complete your taxable payments annual report.
  • To make calculations simpler when claiming GST credits, place the GST in a separate ledger account.
  • Always ask for a PAYG payment summary, if PAYG amount is deducted from your payment.
  • To assess how effectively you are maintaining your business records, use the record-keeping evaluation tool by the ATO.

So, these were some of the common yet effective tips that can help in improving your record keeping. Ask your registered tax or BAS agency or reach out to us for any assistance regarding bookkeeping or record maintenance.

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