How good is your record keeping?

   Posted by Admin

Good record keeping helps you keep track of

  • the money you’ve made
  • the money you’ve spent
  • your cash flow position.

It also helps provide a snapshot of your current situation to help with your business decisions and planning, which is why it’s important to do it properly.

Consider your record keeping practices, do you:

  • keep records electronically and make a backup so they don’t fade or get lost, and keep them for five years
  • reconcile sales regularly to help you identify problems early, such as administration errors
  • remember to account for stock taken for personal use
  • only use your business account to pay for business expenses, so you don’t need to sort through and separate your business and personal expenses all the time
  • keep complete and accurate records as you go along, instead of leaving it until later?

Good record keeping practices will make it easier for you, and your registered agent if you use one, when it’s time to lodge.

If you’re having difficulty with your cash flow, you can prepare a cash flow projection to help you plan and manage. You can also talk to a registered tax professional who can work through our cash flow coaching kit with you.

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