Useful Accounting Information from the ATO for End of Financial Year
We found some very useful information on the ATO website to help you with your accounting at the end of the financial year. Take a look:
Tips for keeping good records
Good record keeping is critical to business success. To help your small business clients keep good records and avoid mistakes, let them know about our tips, tools and services.
- Keep all business records including income, expenses, bank and other goods and services tax (GST) records for five years (although some records need to be kept longer).
- Records must contain enough information to calculate and support amounts claimed on activity statements and tax returns.
- Business records need to include all cash, online, EFTPOS, bank statements, credit and debit card transactions.
- Check the tax invoices received for purchases that include GST are valid.
- Keep records that show when business purchases were used for private purposes – this will help work out the business portion that can be claimed as a deduction.
- Keep business records separate from personal records to avoid confusion.
- Take pictures of paper receipts to avoid faded records.
- Store a copy of all records electronically and have a backup system in place, where possible.
- If changes were made to the record keeping software used during the year, check that all information transferred over correctly.
Issuing tax invoices – for requirements of a valid tax invoice
- Record keeping evaluation tool – helps evaluate your client’s record-keeping practices, to see if they’re still on track.
- myDeductions – tool in the ATO app which helps your sole trader clients with simple tax affairs record and track their business income, expenses and car trips. At tax time, they can email you a spreadsheet file (CSV format) or upload their records to us to pre-fill their tax return. If they upload, the data will be available to you through the practitioner lodgment service (PLS).
- Small business webinars – helps your clients learn about good record-keeping practices and requirements.
Visit www.ato.gov.au for more information.
Are you buying a business in Perth? Do you have a Perth business for sale? For more information on how you can get the best results, contact Angela at Advance Business Brokers today.