Good Business: The Key To Good Record Keeping
Getting into financial trouble is the worst! That’s why we can’t stress enough about the importance of record keeping. Even if you’ve been a model citizen when claiming tax deductions, the ATO still needs official documentation to support any claims made. So, make sure you’re on top of your financial records with some of these tips. As we are not financial planners, or certified accounts, we cannot give you financial advice and recommend that you see a fully certified tax consultant if you have any questions about your taxable income. Click here to visit the ATO.
Details of all the jobs you’ve completed on our platform exclusive of the theright.fit fees.
Records of all expenses incurred relating to the job
- Records of all your expenses such as equipment, motor vehicle costs (fuel, servicing and repairs), work-specific clothing (safety clothing only applicable). Records need to be in the form of receipts, invoices, and bank statements. For small cash expenses you can diarise expenses.
- For purchases that are used both privately and for business, you’ll need to keep a record that shows how much you’ve used it in both circumstances. For example, if you purchase a mobile phone which costs $500 (exclusive of GST) and is used 90% in the business and 10% privately, you can only claim a tax deduction on $450 (being 90% of the costs).
- Inclusive of credit card statements, bank statements, and loan documents
- The main GST records you need to keep are tax invoices from your suppliers. You need a tax invoice to claim GST credits.
To stay on top of your tax, it’s important to keep time aside so that you can keep all your records up to date. You must also keep your records for at least 5 years whether that be electronic statements or paper.