Today Yangsook Lee, ATO’s employee with Korean background joins SBS radio studio to explain about Record keeping.
The key tips to make keeping records easy are:
- keep your records electronically - for instance on your phone or laptop, and
- keep evidence of all transactions and take pictures of any paper receipts because paper records can fade quickly.
In most cases, you need to keep them for five years and don’t forget to keep your business records separate from your personal records.
You also need to make sure your business records include cash, online, EFTPOS, banks statements, credit and debit card transactions.
You need to keep records showing when you use business purchases for private purposes. This will help you work out the business portion you can claim as a deduction and prove your claim.
Good record keeping includes collecting information about any payments you make to contractors and subcontractors. You should record details like a contractors name, address, ABN and total amount you paid them within a financial year - details that are generally on the invoices given to you.
Remember, without proper records you may not be able to claim what you’re entitled to. Visit ato.gov.au/taxreturnrecords for details.
More details on the podcast above.
Yangsook Lee, ATO Source: SBS Korean Program
