Record keeping (also called bookkeeping) is no one’s favorite job. But, if you have a small company, the truth is, great record keeping is essential. According to the Law, every company expected to keep timely and accurate records.
I can not stress enough how important it is to arrange your accounts from the start by using easy accounting software that satisfies your needs and setting up.
Here are six easy ideas to generate record keeping simpler and less stressful during EOFY:
- Allocate time and give to your books. Routine reviews will tell you the way your company is going and let you control your income.
- Start a brand new company bank account for expenses and company profits.
It is necessary to maintain your private trades different from your company trades. In time, you use the same terms and may make an application for a small business credit card.
3. In the event you are uncertain which applications to choose, you may get in touch with before you get it a business consultant or accountant that can guide you. We prefer to make use of MYOB bookkeeping options. With cloud applications, one key advantage is you could get your financials anyplace, anytime or have your bookkeeper or accountant check info for you.
Nevertheless, always make sure you maintain back-ups of your fiscal data as an additional security measure.
4. All companies have to enroll for an ABN, and in case your turnover is more than $75, 000 apply for GST registration. To be able to maintain on your expenses, you also need to retain receipts for all acquisitions. You also have to register for PAYG withholding Tax should you employ staff. This is the location where you withhold some tax on their behalf and pay staff.
With set up and the correct bookkeeping software, you can have this info at your fingertips. In this way, you create systems that will help you automate and streamline your business processes for you to remain compliant.
5. Retain your receipts (For more information check out this blog)
The ATO requires you to maintain records for at least five years. The records have accessible upon request, and you’re required to keep are:
Rendered by your company.
- Invoices for services, goods or alternative company acquisitions bought for your company.
- All financial statements including balance sheet and profit and loss statement.
- Tax Return info.
- Bank accounts and charge card statements
You can create digital files in your personal computer to save this info or keep a filing cabinet that is nicely organized.
- Or, get an excellent bookkeeper
As your company expands, you will need to employ the help of a great bookkeeper, remember this service is, also, tax-deductible.
For a peace of mind, it is necessary to satisfy with compliance obligations and all your tax for the 20xx EOFY interval. See the latest Tax Changes Tips meant to help startups and small businesses stay on the very top of their match with much more and tax changes.