What Records Should I Keep for My Accountant?

If you're starting out in business, or have grown past the point that you can comfortably do you own tax return, there's nothing worse than finding out that simple information about your business transactions could have saved you thousands, in the hands of your skilled Bondi Junction accountant. Some of the most common records that are needed by your Bondi Junction accountant to maximise your tax deductions and minimise the chance of getting into trouble when audit time comes include:

1. Vehicle usage records
   There are no receipts for vehicle usage. Even if you're accustomed to keeping every little piece of paper, it is smart to also keep a logbook of your business travel in each car to be handed to your Bondi Junction accountant at tax time.
2. Invoices for electronic transactions
   These are another frequently lost deduction. A transaction on your credit card statement is not always enough to allow you to claim a deduction for a business expense paid electronically (for example, via Paypal). You'll need an associated invoice for the transaction also.
3. Records showing private/business usage calculations
   If you have resources that are shared between your home and business, your Bondi Junction accountant will ask you to approximate a percentage of the expense dedicated to business use. For example, if you work on the internet from home, you may keep a week's worth of web history, seeing how many sites you visited were for business and how many for personal use. This could be extrapolated to cover your other weeks, and would be acceptable in an audit situation.
4. Depreciation schedules
   These can be worked out at year-end - but it is usually simpler to keep consistent records for your Bondi Junction accountant.
5. Fringe benefits records
   These incidentals may often come out of petty cash, but it is important to keep records of the employees that they pertain to, and their business purpose.
6. Petty cash records
   Related to the above, any spending that comes from petty cash needs to be recorded also! 'Petty cash' should only be used as an interim description of a withdrawal from a business account - once the cash has been spent, it should be attributed to its actual expense.
7. Fuel disposal
   This is rarely applicable, but vital to record. This will most often be applicable for primary producers and transport companies.
8. ANY other receipts!
   Of course, you'll also need to record ANY other money that comes into, or goes out from, your business for your Bondi Junction accountant!

Not sure whether you can safely recycle or shred something? If in doubt, get in touch with the expert Bondi Junction accountants at Sullivans.