Keeping Good Records
Good record keeping falls into the “boring but important” category of business management and operations. It is often overlooked for things that might appear to be more pressing, but without good records there can be negative consequences for the business longer term.
Maintaining business records in good order has several compelling advantages, it:
- Allows the business owner to manage using data, making for better quality decisions
- Improves a business owner’s financial literacy and skill at managing cashflow
- Enables accurate comparison of performance with prior periods
- Ensures the business is able to secure applicable tax deductions
- Presents the true value of the business to any potential buyers, lenders or investors
The Australian Taxation Office has a tool to help you determine the records that you need to keep.
As well, the ATO also runs free workshops for small business on this topic. You can find out when the next one is due in a location near you here.