Update and summarise regularly

Reconciling daily sales will help you ensure that you have accounted for all your sales.

Activity statements, GST annual returns, tax returns, income and expense summaries (known as profit and loss statements) will all help you prepare your quarterly and annual reports and make it easier for you to compare your income projections with your actual income.

You should also keep specific records showing when you use business purchases for private purposes and when you make cash payments and drawings.

If you use a bookkeeper or a registered agent, regularly summarising your expenses may reduce the time it takes them to prepare your tax return or activity statements.

Commercial business accounting packages automatically update and summarise your income and expenses records for you. Alternatively, you can do it manually by keeping a record of cash book totals for the period.

See also:

Last modified: 03 May 2016QC 43019