HOME ABOUT US ARTICLES BLOG FAQ CONTACT US
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

Articles Blog

Business Tax Tip – Business Record Keeping ATO – Requirements and what to keep and how long

images/Business Tax Tips.PNGBusiness record keeping requirements for the ATO (Australian Tax Office) are given on their website and here we summarise the key instructions on essential business record keeping requirements and how long to keep, to be compliant.

At the ATO page - Record Keeping for Small Business it says -

By law your records must:

  • explain all transactions
  • be in writing (electronic or paper)
  • be in English or in a form that can be easily converted
  • be kept for five years (some records may need to be kept longer).

If you don't keep the right tax records, you can incur penalties.

How to keep records

You can keep invoicing, payment and other business transaction records electronically or on paper. The principles are the same for each, but keeping electronic records will make some tasks easier.

With the right electronic record-keeping software you can:

o   automatically tally amounts and provide ready-made reports

o   produce invoices, summaries and reports for GST and income tax purposes

o   keep up with the latest tax rates, tax laws and rulings

o   report certain information to us online

o   save on physical storage space

o   back up records in case of flood, fire or theft.

If you intend to use a bookkeeper or accountant, get their advice about the best system for you – choose a system you can understand and operate easily.

At page - Business Records you Need to Keep

You must keep records to help you prepare your business activity statements (BAS) and annual income tax return, and to meet other tax obligations. Below is a list of the records all businesses need to keep.

Income and sales records

Records of all income and sales transactions, including tax invoices, receipt books, cash register tapes and records of cash sales.

Expense or purchase records

Records of all business expenses, including cash purchases. Records could include receipts, tax invoices, cheque book receipts, credit card vouchers and diaries to record small cash expenses. If you bought something for your business, but sometimes use it for private use, you also need to keep records showing how you worked out how much of its use is private.

Year-end records

These include lists of creditors (people you owe money to) or debtors (people that owe you money). It also includes expenses you incur buying, maintaining, repairing and selling business assets or stock. You should keep worksheets to calculate the decreasing value of your assets (also called 'depreciating assets'), stocktake sheets and capital gains tax records.

Bank records

Your banking records can include things like deposit slips, cheque butts or payment records, bank and credit card statements, and loan or lease agreements.

Your business and personal expenses should be kept separate. Separate business bank accounts are mandatory for partnerships, companies and trusts. If you're a sole trader, a separate business bank account can also make your records easier to manage.

Other records you may need to keep

Depending on your tax obligations you may also need to keep other records. Some examples are listed below.

Goods and services tax (GST) records

If you are registered for GST, keep all tax invoices from your suppliers, which will help you claim GST credits. You must keep any other document that records adjustments, a decision or a calculation made for GST purposes. You report GST amounts and claim GST credits for purchases on your business activity statements (BAS).

(For other records you may need to keep, see more on that page)

Interestingly, in the Non-Profit section on records to keep, further down that page, there is a reference about invoices under $75 -

Invoices you receive

A tax invoice of more than $75 (excluding GST) must contain enough information to allow key information to be clearly determined, for example, your supplier’s ABN. Otherwise, you generally need to withhold 46.5% from your payment to the supplier.

If you receive a document from a supplier that is missing key information, you may still be able to treat the document as a tax invoice if the document makes clear that it is intended as a tax invoice and the missing information can be obtained from other documents issued by the supplier.

You cannot claim a GST credit in an activity statement unless you have a tax invoice. If you obtain a tax invoice later, you can claim the GST credit in the activity statement for the tax period in which you obtain the tax invoice.

Tax invoices are not required if the GST-exclusive value of the sale is $75 or less. However, you should have some documentary evidence to support all GST credit claims.

(The only thing is this is under the Non-Profit section)

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call 0407 361 596 Aust

Search here for info you need. Call for FREE.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Business Financials – What is the difference between Liability and Debt – Debt vs Liability

images/Liability-vs-Debt.jpg

What is the difference between liability and debt?

images/Liability 300x224.jpg

Often, people use liability and debt when they mean the same thing in many situations of accounting.

images/Debt.jpg

As an example, in the debt-to-equity ratio, (debt usually means the total amount of liabilities or vice-versa. In this case, debt includes short-term such as overdrafts and credit cards plus long-term loans and bonds payable, and normally also includes accrued (yet to be paid) wages and utilities, income taxes due, and other liabilities.

In other words, sometimes debt is means all obligations…all amounts owed…all liabilities.

However, other times, the word debt is used more narrowly to mean only the formal, written financing contracts such as short-term loans payable, long-term loans payable and bonds payable – example, hire-purchase, equipment finance, etc.

So look further, to know WHAT is being used – be clear!

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much!

Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

More Articles...

  1. Cashflow Tip – Business or Personal Expenses claimed – What is the long-term plan? Business lessons
  2. Business Tax Tip – Employer of working holiday makers and tax rates
  3. Cashflow tip – How your Company Cashflow affects your Employees
  4. MYOB – How to delete old items in Account Right (AR)
  5. Cashflow tip – Improve Cashflow by your invoicing!
  6. Business Tax Tip – What Tax and Super is on Commissions and Bonuses
  7. Business Tax Tip – Do I pay the tax due or spend the amount on growing my business?
  8. Bookkeeping – Paid Parental Leave - What is Parental Leave Pay Australia & how do you enter in the bookkeeping accounts?
  9. Business Financials – What are Generally Accepted Accounting Principles (GAAP) accounting - explained
  10. MYOB – Paying Superannuation for Employees – What reports to use
  11. Business Tax Tip – Taxable Payments Annual Report – TPAR – Now covers Building, Cleaning and Courier businesses!
  12. Business Tips –When you feel stuck – 5 ways to refresh and go again!
  13. Business Tax Tip – How to Correct GST errors
  14. Business Financials – What does the Accounting Equation Mean? What does it show?
  15. Cashflow tip – Ways to Manage Cash Flow in small Business – Understand Cash Flow
  16. MYOB – Tax Tables for 2019-2020 – to v19 (Classic MYOB)
  17. Business Tips – How to find your ideal client – Tips on how to define them
  18. Business Tax Tip – Single Touch Payroll – STP and the ATO – the new reporting method
  19. Cashflow tip – How we help to focus on key KPI to impact growth for our clients
  20. Business Tax Tip – Another 9 EOFY – End of Financial Year tax tips to prepare for Year End Now!
  21. Business Tax Tip – 9 EOFY, End of Financial Year Tax Tips to Start Year End Preparation NOW!
  22. Reckon / Quickbooks – Accounts Hosted and PC versions – How to set up and use ABA files to pay suppliers/creditors
  23. Reckon One – Simple Online Accounting – Reckon One Support, User Guides and How to use Reckon One
  24. Business Tax Tip – Tax on Annual Leave and Long Service Leave on Termination / Resignation Payout
  25. MYOB – How to set up child support in MYOB payroll
  26. Business Tax Tip – How to understand GST on the sale of assets
  27. Business Financials – The Accumulated Depreciation Asset Account on the Balance Sheet
  28. Cashflow tip – What is the difference between cashflow and budget?
  29. Reckon / Quickbooks – How to change the email message for sales invoices - Accounts Hosted and PC
  30. Business Financials – How to understand what “non-cash expenses” means and what types of non-cash transaction examples there are
  31. Cashflow tip – Top ways to have better cashflow – 5 top tips
  32. Business Tax Tip – Don’t get caught with Small Business Capital Gain Tax Concession thresholds
  33. MYOB – How to deal with overpaid retentions
  34. Business Financials – How to successfully understand the difference between Mark-Ups and Margins when pricing
  35. Business Tips – How to achieve successful selling
  36. Bookkeeping – How to enter Annual Leave that was missed?
  37. MYOB AR & Essentials – Paying super and Superstream in v19 (when not in the cloud yet) – Using the Super Portal by MYOB to be compliant
  38. Business Financials – Do you make Profit.. but have no Cash!
  39. Cashflow tip – Cashflow and Budget – What are they and how are they different?
  40. Business Financials – What is the Balance Sheet – An example and definition
  41. Reckon / Quickbooks – How to customise an invoice in Quickbooks / Reckon
  42. Business Tax Tip – Types of Business Structure in Australia – How profit is handled and taxed
  43. Business Financials – How does a Profit and Loss statement work?
  44. Cashflow tip – What does the Cash Flow Statement Show us?
  45. Business Tips – What is the last Competitive Advantage for a business?
  46. Business Financials – Tax Breaks for Business – Do they encourage and stimulate business innovation and the economy?
  47. MYOB Essentials – Assets and the CAP tax code for your Capital Purchases (assets)
  48. Bookkeeping – Redundancy – What is Redundancy Pay – How much is Redundancy pay?
  49. Xero/Reckon/MYOB - Bookkeeping entries for loans – Lending money to business
  50. Business Tax Tip – GST and Leasing – How it works
  51. Business Financials – Paying Superannuation for Employees
  52. Bookkeeping – BAS – What is the BAS statement and the accounting the bookkeeping needs to cover
  53. Cashflow tip – How to improve cash flow for business – 5 top things to act on NOW!
  54. MYOB Essentials – Why tax is appearing when only $300 is earned for the week, under the tax free threshold?
  55. Business Tax Tip – GST and Hire Purchase
  56. Cashflow tip – Making a Profit but have no cash – what are the reasons?
  57. Reckon ONE – How to Set Up and how to Report Taxable Payments Annual Report (TPAR) – and when due?
  58. Reckon / Quickbooks – How to Set up and How to Report Taxable Payments Annual Report (TPAR) – and when due?
  59. XERO – TPAR – Taxable Payments Annual Report – How to set up and report in MYOB AccountRight
  60. MYOB – TPAR – Taxable Payments Annual Report – How to set up and report in MYOB AccountRight
  61. Xero/Reckon/MYOB bookkeeping –Tax Tables for 2018-2019 – and which versions of MYOB - update
  62. Business Tax Tip – TPAR – Taxable Payments Annual Report
  63. MYOB Quickbooks Reckon Bookkeeping – New Tax Tables 2018-19
  64. Reckon / Quickbooks – Single Touch Payroll – STP – in Reckon One- Accounts Hosted and Accounts 2018
  65. Business Financials – Here are 5 End of Financial Year (EOFY) tips 2018
  66. Xero bookkeeping – Single Touch Payroll – STP – reporting in Xero software
  67. MYOB – Single Touch Payroll –STP - reporting in MYOB
  68. Business Tax Tip – What is STP - Single Touch Payroll reporting?
  69. Bookkeeping – 7 Key Tips - How to Organise Business Paperwork and Accounts
  70. Cashflow Tip – What the Cashflow Statement shows and tells us
  71. Business Tips – A new way to get a Competitive Advantage?
  72. Business Tax Tip – Do Government tax incentives for small business encourage and stimulate business innovation and economies?
  73. MYOB Essentials – Set up to Assets and GST to enter Motor Vehicle Purchase
  74. Business Tips – How Integrity Affects Business – especially Integrity of CEOs and Managers
  75. Bookkeeping – Redundancy – How does it work - How much Redundancy pay applies
  76. Xero/Reckon/MYOB bookkeeping – How to enter transfers/ payments from personal account to pay business expenses
  77. Business Tax Tip – Leasing and GST – GST on lease payments
  78. Business Financials – SBSCH – Small Business Super Clearing House – Helping small business meet super obligations
  79. Bookkeeping – The BAS (Business Activity Statement) and what you need to get form your bookkeeping and accounts
  80. Cashflow tip – Improving Cashflow in a Business
  81. MYOB Essentials – Why is PAYG tax calculating when only $300 gross is earned for a week?
  82. Business Tax Tip – GST and Hire Purchase
  83. Cashflow tip – I make profit but no cash! What is happening?
  84. MYOB Essentials (online accounting) – Tips setting up Employee – Why is there too much PAYG tax when we have ticked Tax Free Threshold?
  85. Business Financials – The Cashflow Statement – How to construct a cash flow statement
  86. Business Tips – 5 Biggest Mistakes Business Owners Make
  87. Business Tips – How to turn mistakes into opportunities for business
  88. MYOB – Overpaid supplier in MYOB –Hhow to handle
  89. Business Financials – The Cashflow Statement – What it is and how it is used
  90. Reckon / Quickbooks – ‘You cannot enter a transaction that contains both Sales and Purchase Tax Items…” - How to overcome the warning when changing tax code in general journal
  91. Business Tips – Improve your selling – help your prospect get what they NEED
  92. MYOB – SuperStream and how MYOB Account Right Essentials and Premier can help
  93. Bookkeeping – How to get your books Organised and Systemised in 6 steps!
  94. Cashflow Tip – 5 ways to get more from your bookkeeping / accountant – or be a better bookkeeper
  95. Xero/Reckon/MYOB bookkeeping - how to treat dishonoured cheques in bank reconciliation – how to record in Xero / MYOB / Reckon / Quickbooks
  96. Reckon / Quickbooks – Invoices posting to bank account – Not correct – How to fix?
  97. MYOB – Export customer card with price levels
  98. Business Tips – Some ways to avoid small business burnout
  99. Business Tax Tip – Starting a Business – ATO resources to help
  100. Bookkeeping – Using Dropbox for Company Datafiles – Does it work?
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software

CATEGORIES


CUSTOMER LOGIN





Forgot your password?
Forgot your username?
Create an account

YOUR CART

The cart is empty

Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
© Account Keeping Plus 2012   |   Website Design by Low Cost Web Site Design Melbourne    |   Admin