Record keeping
Keeping up to date and accurate records is an important part of running your business. There are different types of transaction documents, including tax invoices, wages records, cheque butts and credit card statements. They contain the information you need to record, such as the date of the transaction, total payment or amount received, or the amount of goods and services tax (GST).
Be aware of the dates that you need to submit compliance documents such as BAS, GST, PAYG, and annual tax returns. You should speak to a professional tax adviser regarding what you need to do in your situation.
How do I register for tax?
When you start a business you may register for an Australian Business Number (ABN). It is unique to your business and should be provided on all business stationery, especially invoices. Once registered with an ABN there are a number of tax registrations you may need. Refer to the ATO's registering your business for tax purposes for more information.
What records should I keep?
Keeping your records in order will not only help you at tax time, it is required by law. While we recognise it can, at times, be difficult to keep your personal and business records separate, this will be important for tax reasons. Most records are required to be kept for 5 years. These can be kept manually or electronically, but must be kept in English and be easy to access for audit purposes.
How can I track and manage transactions?
A suitable business transaction account will assist in managing and tracking business transactions. Account access options like Business Online and cheque books may be an essential part of the way you want to track your transactions. eStatements and paper statements are generally available on most accounts giving you regular updates of all your account transactions.
Business Online services can help with such things as:
- Anytime snap shots of your transactions
- Cash flow manager functions for simple automated record keeping
- Preparation and lodgement of your business activity statements
- Export transactions to your financial management software
- Making payments directly to the Australian Tax Office.
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How can I track expenses?
Paying suppliers or paying for day to day staff purchases for the business may mean trying to balance multiple cheque books. Alternatives to using cheque books or petty cash are business credit cards and Business Debit MasterCards ®. They are a convenient and flexible option for covering day to day expenditure and paying suppliers over the Internet, phone, or by mail order.
Generally you can access multiple cards on one account, this means only one statement, and often you can export transactions direct to your financial management software. This saves you valuable time monitoring and controlling costs. Some cards also offer rewards and complimentary insurance adding more value to your business.
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Things you should know
- The statements above do not constitute tax advice or any recommendation as to the suitability of the product, and are based upon current tax laws and their interpretation. You should seek your own independent professional tax advice on any taxation matters including the taxation obligations.
