The easiest way to keep records for your business

Written By carl ireland

The easiest way to keep records for your business is using cloud-based accounting software. Think, Xero, QuickBooks, or MYOB. These allow you to automate, digitise, and store records securely in real time. This approach minimises manual errors, saves time, allows for easy bank reconciliation, and simplifies tax obligations. 

Key Components of Effective Record Keeping:

  • Go Digital: Replace paper files with scanned images or photos of receipts/invoices using apps.

  • Automation: Utilise software that links to bank feeds for automatic transaction tracking and categorisation.

  • Backup Securely: Ensure digital records are backed up in the cloud to protect against data loss.

  • Consistency: Review and reconcile financial records monthly to stay on top of cash flow.

  • Retention: Keep all required tax and financial records for at least 5 years. 

Essential Records to Keep:

  • Income/Sales: Invoices, receipts, and bank statements.

  • Expenses: Receipts, invoices, and bank statements.

  • Assets & Liabilities: Records of equipment purchases, loans, and, for companies, ASIC related documents.

  • Employees: Employment records and superannuation details. 

Tools for Record Keeping:

  • Accounting Software: Xero, QuickBooks, MYOB.

  • ATO Tools: The myDeductions tool in the ATO app is useful for sole traders to store photos of receipts.

  • Secure Storage: Cloud storage solutions. For example Google Drive and  Dropbox. 

If you have any questions regarding record keeping please contact me paul@congdonfuzi.com.au

carl ireland https://www.makesmith.agency
Previous

Using Income Splitting to reduce tax
Next

15 ways to save money today