Bookkeeping Melbourne Australia - all suburbs

Setting up your record keeping

Do you know...

Why this is important

Where you can find out

14. What records do you have to keep, and for how long?

The tax law requires you to keep records for five years. These include records relating to:

• sales and purchases
• payments to employees, and
• payments to other businesses.

Keeping good records also makes it easier to manage your business.

Record keeping for small business (NAT 3029) – Chapter 2 – Business records you need to keep

Work out what records you need to keep by using the record keeping evaluation tool

If you are still unsure, phone 13 28 66 to request a free advisory visit from a tax officer.

Talk to your tax adviser.

15. Can you keep your records electronically?

Keeping records electronically improves accuracy and may save you time.

The Tax Office has free electronic record keeping software called e-Record.

You can also use commercial software packages.

For information about e-Record, visit www.ato.gov.au/erecord

Click here to find a list of commercial record keeping packages which satisfy Tax Office requirements.

16. Do you need a bookkeeper?

Bookkeepers can’t give tax advice, but they can manage your records. Eligible bookkeepers can also prepare and lodge your activity statements.

It’s a good idea to get a bookkeeper to set up your record keeping system.

Your tax adviser may be able to recommend a bookkeeper.

17. How can you manage your cash flow?

Managing your cash flow is critical to managing your business. Good cash flow management will help you to pay your bills on time, including your tax bills.

Record keeping for small business (NAT 3029) – Chapter 3 – A basic paper record keeping system – Managing your cash flow