Records management is an essential part of every business, and can help you stay organised, time efficient and save money. Implementing the proper procedures for record management will not only help you to stay ahead of the game, but also meet all legal requirements.
By law and in accordance with the ATO, every business must:
- Explain all transactions
- Be in writing (electronic or paper)
- Be in English or easily translated
- Be kept for five years (some records are required to be kept longer)
If you are unsure of what records your business need to keep then use the ATO’s record keeping evaluation tool.
Whilst it is perfectly okay to complete your business records on paper, it can be much simpler and time effective to use online tools instead. Online systems can back up records, automatically tally amounts, create GST reports, keep up with the most recent tax rates, and more.
It is important to choose a system that best suits your business, and that you find easy to comprehend and use. Business Victoria suggest commonly used systems including MYOB, QuickBooks, Reckon One, Sage, Xero – online, Cashflow manager, Nominal and Saasu.
Getting your records right is essential to your business’s success, so book an appointment with a Small Business Smart Business mentor to discuss your options.