When it comes to small business accounting, record keeping is everything. Keeping decent records can help minimise your taxable income, can save you a lot of time, and can make things a lot easier when it comes time to file your tax return.
If you are struggling with record keeping, you’re not alone – most small business owners have some sort of trouble keeping the right records, and this often comes back to bite them at tax time. If you don’t really understand what your obligations are when it comes to record keeping, you should think about speaking to an experienced accountant.
What sort of records do I need to keep?
When it comes to record keeping, there are a few things that it is absolutely essential to keep track of throughout the year so you don’t run into trouble at tax time. Some of the most important include:
- Your expenses – When it comes to calculating your taxable income, you will need to know how much money you spent to run your business. Any and all business expenses should be recorded and kept track of. If possible, keep and tax receipts, as they will be needed as proof when you submit your tax return.
- Income – Keeping a clear record of your income, where it came from, and how it needs to be taxed is essential, especially if you have any income from investment.