As a business owner in Australia, you are probably familiar with the importance of keeping accurate records of your financial transactions. Not only is it a legal requirement under the Australian tax laws, but it can also have a significant impact on your tax returns.
Yes it is time-consuming and probably the first thing that gets deprioritised during busy days, but everything from purchases and sales, transactions to payroll, and other general expenses needs to be tracked. The incentive for doing so is that the better the records you have, the easier it is for accountants and the ATO to understand the business and get the best result possible when it comes to tax time. If you fail to keep accurate records, you may not be able to claim all of the deductions and tax credits that you are entitled to. This can result in higher tax bills and potentially costly tax audits – neither of those things are fun for any party involved.
There are actually even more benefits
– Accurate records can help you identify areas where you can reduce your tax liability and improve your overall financial performance.
– It can also help identify potential areas of fraud or financial mismanagement and take action to rectify them.
– When you track of your income, expenses, and other financial data, you can identify trends and patterns that can help you make more informed decisions about your business.
We know it is not the most fun thing to do in a given day – so if you are struggling to keep up with your record-keeping obligations, consider hiring a professional bookkeeper or accountant to help you. They can provide valuable advice and support to ensure that your financial records are accurate and up-to-date, and can help you make informed financial decisions that can benefit your business in the long run. At Surry Partners, our team is ready and willing to take this admin work off your plate to free up your time with more important day-to-day activities. Book in a free 30min consultation today.