Efficient tax record keeping is essential for every small business in Perth. Accurate, organised records help streamline tax returns, minimise compliance risks, and improve decision-making. Whether you’re a sole trader or a growing enterprise, adopting effective bookkeeping practices ensures your business is prepared for any financial review.
In this blog, we’ll explore expert record keeping tips from a seasoned business tax accountant in Perth, along with practical strategies that support better financial outcomes for your business.
- Understand What Records to Keep
The ATO requires businesses to maintain financial records that explain their transactions. These typically include:
- Sales and purchase invoices
- Bank statements and reconciliations
- Payroll records
- BAS lodgements and GST calculations
- Superannuation and PAYG summaries
- Expense receipts
As a rule of thumb, your records must show your income, deductions, and any tax obligations. A qualified business accountant in Perth can help you identify industry-specific documents required for compliance.
- Digital Record Keeping Is a Must
Gone are the days of shoeboxes full of receipts. Digital tools like Xero, MYOB, and QuickBooks simplify tax record keeping, automate transactions, and store data securely in the cloud. They also reduce human error and enable real-time access to your financials.
A small business tax accountant in Perth can help you choose and set up the right accounting software for your business, ensuring you’re making the most of automation features like bank feeds and invoice tracking.
- Separate Personal and Business Finances
Mixing personal and business finances can cause accounting errors and complicate tax reporting. Set up a dedicated business bank account and avoid using it for non-business purposes. This makes it easier to track deductible expenses and monitor cash flow.
A business tax accountant in Perth can assist you in structuring your accounts correctly, ensuring all transactions are clearly documented and reconciled.
- Maintain a Consistent Filing System
Consistency is key when managing financial records. Create folders (physical or digital) based on categories such as monthly expenses, payroll, or tax returns. Label and organise your documents regularly—this saves time during tax season and reduces the risk of missing crucial records.
For growing businesses, consider engaging a business accountant in Perth to implement a structured bookkeeping system tailored to your operations.
- Track GST and BAS Obligations
If you’re registered for GST, you need to collect and remit GST to the ATO and lodge regular Business Activity Statements (BAS). Keep detailed records of:
- Taxable sales and purchases
- GST collected and paid
- Tax invoices and adjustment notes
A small business tax accountant in Perth can prepare and lodge BAS on your behalf, ensuring your submissions are accurate and timely.
- Retain Records for the Required Period
The ATO mandates that business records must be kept for at least five years. This includes all documentation related to income, expenses, GST, payroll, and tax returns. Keep backup copies in multiple locations—ideally cloud and external hard drives—for added security.
- Schedule Regular Reviews
Review your records at least monthly to check for errors, missed entries, or inconsistencies. Regular reviews also give you a clearer picture of your business performance and help you make informed decisions throughout the year—not just at tax time.
Your business accountant in Perth can help by conducting quarterly financial reviews, identifying opportunities to improve record accuracy and tax outcomes.
- Stay Compliant with Employee Obligations
If you have staff, maintain up-to-date records on wages, superannuation, leave entitlements, and PAYG withholding. Using payroll software helps automate these tasks and stay compliant with Fair Work and ATO requirements.
A business tax accountant in Perth can also help ensure your payroll system is compliant and efficient.
- Keep Records for Asset Purchases and Depreciation
If your business purchases assets like equipment or vehicles, maintain records including purchase documents, depreciation schedules, and financing details. This is crucial for claiming depreciation and calculating capital gains or losses if you dispose of assets later.
Conclusion
Keeping accurate and organised financial records isn’t just about avoiding ATO penalties—it’s about gaining control of your business finances. By following these record keeping tips and partnering with an experienced small business tax accountant in Perth, you’ll stay compliant and position your business for long-term success.
Need help with business tax record keeping?
Visit our website https://perthtaxpeople.com.au/business-accountants-perth/ to connect with a trusted business tax accountant in Perth and streamline your financial management today.
Frequently Asked Questions
Q1: How long should I keep my business records in Australia?
You must retain business records for a minimum of five years from the date they were prepared, obtained, or the relevant transactions completed.
Q2: Can I keep all my records digitally?
Yes, the ATO accepts digital records, provided they are clear, complete, and accessible upon request. Digital formats must be backed up and protected against data loss.
Q3: What records should small businesses keep for tax purposes?
Maintain documents such as income and expense invoices, BAS statements, payroll records, super contributions, and bank transactions.
Q4: Do I need a business tax accountant even if I use accounting software?
Yes, a business tax accountant in Perth ensures compliance, identifies deductions, and advises on strategic tax planning beyond software capabilities.
Q5: How often should I update my financial records?
Ideally, update records weekly or monthly. Regular updates help identify errors early and ensure your financial reports reflect accurate performance data.
