Having a good record-keeping system is essential for every business to track the business performance at any stage. Besides, having perfect accounting records will help business owners to retrieve financial reports and to access the complete business finance details at any time.
How Often You Should Update and Keep Your Business Records?
In most cases, business owners prefer Outsourcing Accounting Services to manage and update their business accounts at regular intervals. In Australia, you need to be updated with your business accounts for the minimum period of 5 years according to the Australian Taxation Office. However, if you check with the Australian Securities and Investment Commission (ASIC) it requires you to safeguard and keep the up to date business records for 7 years.
Why Record Keeping is Important for Business?
It is a law in Australia, concerning that every Australian based business needs to keep their business records and documents related to their business operation. Apart from that, for business owners keeping up-to-date records will help in many ways. Few of the benefits offered by keeping/updating accounting records for business owners listed below.
- It helps owners to track their business health
- It helps owners to take business decision effectively based upon the track records
- Accounting records helps business owners to manage their business cash flow
- Keeping up-to-date records will help business owners to demonstrate their business financial position strongly to the financial lenders, suppliers, buyers, and so
- It eases the taxation process
What Type of Records Every Business Owners Needs to Keep?
- Financial Records
- Legal Records
- Employee Records
- Policy and Procedures
- Other Business Records
How You Should Update and Keep Your Records?
As per the instruction provided by the ATO and ASIC, business owners are supposed to keep their accounting records written in either paper or electronic format. Also, all accounting records should be in the English language and it should elaborate all business transactions in detail.