Good record keeping makes things easier at tax time – consider if a digital business solution (such as digital record keeping) will help you.
When it comes to record keeping, there are 5 rules. You need to:
- keep all records related to starting, running, changing, and selling or closing your business that are relevant to your tax and super affairs
- store records safely to prevent damage and protect information from being changed (you must not change relevant information in records)
- keep most records for 5 years (for example, you need to keep records of losses for up to 5 years after you’ve fully claimed the loss)
- be able to show us your records if we ask for them
- ensure your records are in English or easily converted to English.
These detailed business record-keeping requirements explain what information you need to keep, including examples of types of records and useful record keeping tips.
The ATO provide a record keeping evaluation tool only takes 5 to 10 minutes to use and will let you know how well you’re keeping records.
If your tax records are damaged, destroyed or lost, the ATO may be able to help you reconstruct them.
Remember, registered tax agents like the team at Cotchy can help you with your tax! Feel free to contact our office to discuss further: firstname.lastname@example.org.
Source: ATO Newsroom