Tax basics for small business

Keeping good records

Poor record keeping is one of the main reasons why many small businesses fail.

Good business records will help you manage your business, meet your tax obligations and make sound business decisions. They will save you time and money.

Specifically, good records will help you:

• work out your costs and profitability and monitor your stock
• show your financial position to banks and other lenders, or to prospective buyers of your business
• use your accountant's time for business and financial planning, not for sorting out your receipts and invoices
• complete and lodge activity statements and tax returns
• make super contributions by the quarterly cut-off dates
• manage your cash flow so you can pay your tax on time.

Sections within Keeping good records

• Legal requirement
• Keeping manual or electronic records
• Records you need to keep
• Special records you may need to keep
• Record keeping tips
• Record keeping tools