Under tax law, if you are operating a business you are required to keep ALL records explaining declared income and expenses, (i.e., tax deductions), whether it is a $5,000 sale or a $2.00 deduction, the ATO want to see some form of proof and also they may seek out inconsistencies.
These inconsistencies may be seen in sales invoice numbering, cheque numbers, cost of goods to total sales margins, travel expenses, motor vehicle claims and this list goes on. Don’t assume the ATO won’t look…
The ATO states: To claim GST credits, you must have a valid tax invoice for the goods and services that you purchase for your business. However, you can claim GST credits for business purchases you make up to $82.50 without holding a tax invoice as long as you keep records that support the claim, (for example, cash register dockets or receipts).
You must have something to show proof of payment in order to claim an expense, even if it is less than $82.50.
You may keep records in paper or digital format. The same criteria apply for both:
Business records must be kept for a period of five years from the time your tax return is lodged.
Payroll records must be kept for seven years after the end of financial year.
At OzAccounts we do more than prepare your BAS statements. With over 30 years experience and certified accountants on our team, we help you with all financial aspects of your small businesses. We can give you the right advice and information so you can make healthy decisions for your business.
Jo Roberts in a cloud integration magician. With over 20 years experience in business, Jo is passionate about ensuring business owners know exactly how they are tracking with their money. Jo also holds partnerships with the major leading software systems: Xero Silver Advisor, MYOB Certified Consultant, Intuit QBO Pro Advisor, Reckon Accredited Consultant... and many more!
With over 20 years serving businesses in various verticals, we've come to know what works and what doesn't.
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