Keeping accurate and up-to-date records is vital to the success of any business. Well kept records help you to minimise losses and manage cash. It is also a requirement under taxation laws. Your bookkeeper or accountant can help you set up a record keeping system.
BASIC RECORDS TO KEEP
CASH MOVEMENT – Cash book or financial accounting program that records cash receipts and cash payments. Bank account (e.g. cheque books, deposit books and bank statements).
SALES – Invoice books, receipt books, cash register tapes, credit card documentation, credit notes for goods returned and a record of goods used by the business owner personally.
PURCHASES – Cheque butts (larger purchases), petty cash system (smaller cash purchases), receipts, credit card statements, invoices, any other documents relating to purchases including copies of agreements or leases.
END OF FINANCIAL YEAR RECORD KEEPING
STOCKTAKE – Details of stock on hand at the beginning and end of the year, to work out whether the business has a taxable income for tax purposes.
DEBTORS & CREDITORS – Details of all your debtors and creditors for the period.
DEPRECIATION – Original purchase agreements or tax invoices, a depreciation schedule, the cost of transporting the items to your business (if applicable) and installation costs (if applicable) – to obtain tax deductions for depreciation (wear and tear) of assets.
EXPENSES – Cheque butts, receipts, cash register tapes, copies of statements and invoices, credit card documentation, details of payments by cash and log books – other than the normal purchases of the business.
STAFF & WAGES- Full details of wages, employment contracts, tax deducted, fringe benefits, superannuation and related matters such as sick pay and holiday pay.
OTHER RECORDS – Stock records, accounts receivable, accounts payable, and other basic accounting records. Sales and purchase contracts, loan agreements, rental agreements, lease agreements, franchise agreements, sale and lease back agreements, trading agreements with suppliers, legal documentation, evidence of deposits with utilities, contracts with telephone companies and your business name registration certificate.
Guest Post: Sarah Stein WAHM Bookkeping Expert
