When you own a small business, it is imperative that you keep a good set of books with full, accurate, up-to-date business records. Bookkeeping involves making a record of the money coming in and out of your business.
There are a number of reasons why you should keep good records of your business transactions. Good record keeping:
- makes it easier for you to meet your tax obligations.
- makes it easier for you to understand how your business is doing.
- helps you make good business decisions.
Record keeping is also a legal requirement. By law you must keep business records for at least five years, either on paper or electronically. They must be in English or in a form that can easily be converted.
If you don't keep the right tax records, you can incur penalties. Poor record keeping is also one of the main reasons why some small businesses fail.
You can arrange a time to speak to one of our tax specialists in the 'Bookkeeping' section in you Honcho account, or alternatively call us on 1300 550 730.