RECORD KEEPING TIPS - PART 2
Continuing on from last weeks tax tip, we are providing some record keeping tips that could save you a lot of time, stress and significantly minimise your tax bill.
1. Set aside some time each day/week to record your expenses - Click here to view last weeks tax tip
2. Keep a photocopy of your receipts or store them electronically
If you are drowning in paper dockets, you can choose to photocopy and/or scan your receipts into an electronic file. As long as the copy you make is clear and legible, you will not need to keep the original receipts and this will likely help keep your records more neat and organised. Photocopying multiple receipts on to a single A4 page is likely to be the best way to reduce the amount of paper you need to store if you do not use an electronic filing system.
If you are storing files electronically you should ensure your information is secure (eg passwords) and properly organised on your computer. Your data should also be backed up in order to allow data to be restored should your computer crash.
This practice is essential for dockets and receipts which fade away quickly. For example, many of the large retailers use a thermal paper which uses no ink. Therefore they can easily fade or be damaged with heat.
If you should be unfortunate to receive an audit from the tax office, having your receipts organised and clearly legible will ensure the tax office will quickly be able to complete the audit, and will not be able to argue or dispute any of the legitimate business expenses you have claimed as a tax deduction.
You should keep these records for 5 years from the date you receive your notice of assessment for the applicable tax year the receipt(s) relate to.
Continuing on from last weeks tax tip, we are providing some record keeping tips that could save you a lot of time, stress and significantly minimise your tax bill.
1. Set aside some time each day/week to record your expenses - Click here to view last weeks tax tip
2. Keep a photocopy of your receipts or store them electronically
If you are drowning in paper dockets, you can choose to photocopy and/or scan your receipts into an electronic file. As long as the copy you make is clear and legible, you will not need to keep the original receipts and this will likely help keep your records more neat and organised. Photocopying multiple receipts on to a single A4 page is likely to be the best way to reduce the amount of paper you need to store if you do not use an electronic filing system.
If you are storing files electronically you should ensure your information is secure (eg passwords) and properly organised on your computer. Your data should also be backed up in order to allow data to be restored should your computer crash.
This practice is essential for dockets and receipts which fade away quickly. For example, many of the large retailers use a thermal paper which uses no ink. Therefore they can easily fade or be damaged with heat.
If you should be unfortunate to receive an audit from the tax office, having your receipts organised and clearly legible will ensure the tax office will quickly be able to complete the audit, and will not be able to argue or dispute any of the legitimate business expenses you have claimed as a tax deduction.
You should keep these records for 5 years from the date you receive your notice of assessment for the applicable tax year the receipt(s) relate to.