RECORD KEEPING TIPS - PART 3
Continuing on from prior weeks, we are providing some record keeping tips that could save you a lot of time, stress and 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 - Click here to view last weeks tax tip
3. Making sure your receipts have all of the information the tax office requires
The tax office requires you to have written evidence to prove expenses more than $300. The records must prove the total amount, not just the amount over $300. If you cannot provide this evidence your deduction may be disallowed and you may incur additional tax and penalties.
To prove your claim you must have receipts and/or other documentation which shows the following information:
- name of the supplier
- amount of the expense
- nature of the goods or services purchased - if not shown, you will need to write this on the document
before lodging your tax return
- date the expense was incurred, and
- date of the document
Sometimes one receipt or docket may not contain all of the information required above. Alternatively, you may have misplaced your receipt, or you did not receive one directly from the supplier. In these instances you are permitted to use other documentation or combination of documents which include the required information such as:
- bank and other financial institution statements
- credit card statements
- BPay reference numbers (may be called receipt or transaction numbers)
- email receipts
- invoices
- delivery notes
- PAYG payment summary (may show union fees)
- paper or electronic copies of documents - must be a true and clear reproduction of the original, and
- warranty documents
As per last weeks tax tip, this written evidence can be stored and provided to the tax office in electronic format. Having your records organised and complying with the tax office requirement will provide you with peace of mind and ensure you are able to claim all of your legitimate business expenses.
Continuing on from prior weeks, we are providing some record keeping tips that could save you a lot of time, stress and 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 - Click here to view last weeks tax tip
3. Making sure your receipts have all of the information the tax office requires
The tax office requires you to have written evidence to prove expenses more than $300. The records must prove the total amount, not just the amount over $300. If you cannot provide this evidence your deduction may be disallowed and you may incur additional tax and penalties.
To prove your claim you must have receipts and/or other documentation which shows the following information:
- name of the supplier
- amount of the expense
- nature of the goods or services purchased - if not shown, you will need to write this on the document
before lodging your tax return
- date the expense was incurred, and
- date of the document
Sometimes one receipt or docket may not contain all of the information required above. Alternatively, you may have misplaced your receipt, or you did not receive one directly from the supplier. In these instances you are permitted to use other documentation or combination of documents which include the required information such as:
- bank and other financial institution statements
- credit card statements
- BPay reference numbers (may be called receipt or transaction numbers)
- email receipts
- invoices
- delivery notes
- PAYG payment summary (may show union fees)
- paper or electronic copies of documents - must be a true and clear reproduction of the original, and
- warranty documents
As per last weeks tax tip, this written evidence can be stored and provided to the tax office in electronic format. Having your records organised and complying with the tax office requirement will provide you with peace of mind and ensure you are able to claim all of your legitimate business expenses.