For small business owners, there is a myriad of daily tasks to oversee but there are few more important than ensuring accurate and complete record keeping. Bookkeeping involves managing accounting systems, payroll, preparing management reports, reconciling accounts, managing loan and debt repayments, accurately calculating GST and submitting BAS’s, and on a day-to-day basis, processing invoices, receipts, payments and other financial transactions.
In Australia, the law requires that all records relating to tax and superannuation affairs be kept for a minimum of five years, relevant information in the records must not be changed and must be protected and all records must be shown when requested by the ATO. Additionally, records must be in writing (either electronically or in paper form) and in English. Failure to comply with any of these requirements may incur legal and financial consequences.
Outsourcing is a good way to stay on top of bookkeeping obligations if a business owner has zero expertise in record-keeping or the business does not have certified in-house resources. Good bookkeeping makes it easy to monitor the health of a business and make sound business decisions. It also makes it easy to keep track of revenue and expenses, manage cash flow, avoid penalties, demonstrate financial prowess, provide audit information and meet tax, superannuation and employer obligations. Despite the use of a registered tax or BAS agent, business owners retain primary accountability for understanding their record-keeping obligations.
Abbotts provide industry-leading bookkeeping, payroll and cloud accounting services to a range of business types across all major industries. We can also assist you in selecting and establishing bookkeeping systems that are suitable for your business needs. Get in touch to leave your record-keeping to our expert team while you get on with the running of your business.