All businesses, sole traders, partnerships and trusts conduct a business activity must maintain sufficient business records.
Keeping good business record is a legal requirement and can lead to severe penalties if the records are not held for a period of five years. There is also a requirement that they must be prepared in English and in a form that is easy to understand.
Other reasons include but are not limited to:
- assistance in annual tax preparation;
- monitoring the financial health of the business;
- managing cash flows; save time and money;
- and requesting amendments.
If you believe the record keeping process is time demanding and expensive to sustain, then ask for help before things get out of control.
You may want to engage a bookkeeper to set up your books or set up a specialsed software program. Remember, these costs are generally a tax deduction for your business.