As you gather your records this tax time, think about what has or hasn’t worked well over the year. Make a new (financial) year resolution for your record keeping practices that’s easy to stick to!
Top tips for record keeping success:
- Maintain separate business and personal records. For example, have a bank account used only for business transactions.
- Keep records for five years (usually from when you lodge your tax return) to prove what you’ve reported and claimed.
- Set aside time to regularly review and update your records. You’ll spot potential problems sooner.
- Keep records electronically if you can. Built-in software checks can help you report income and claim expenses correctly.
Applying good record keeping practices now will make it easier next time you lodge. It’ll also help you track of the health of your business.
Remember, Second Look Accounting & Taxation is here to help you with your tax!
