To run a business smoothly, you need to pay close attention to regular record-keeping and reporting tasks. These tasks ensure that you are able to meet your tax, superannuation, and employer obligations. To avoid common mistakes, the ATO sees, ensure you:
- Keep financial records of how you work out your claims if business funds or assets are also used for personal purposes.
- Make accurate and complete record-keeping practices, including preparing a bank reconciliation statement, as part of your daily business activities.
You need to complete tasks that must be done at specific times, so you are not charged penalties for being late. Some of the following common record-keeping tasks may not be applicable to all businesses, as every business is different.
When should you do record-keeping and reporting tasks?
Daily, if it applies to your business
You need to record:
- Your income
- Your expenses
- Any cash payments or drawings.
Reconcile your daily sales and enter the amount into your main business accounting software system – if you do this in the right way every day, it will ensure the accuracy of your records over the year. Include your:
- Z-totals
- Cash register tapes
- Point-of-sale systems.
If you account for GST on a cash basis, you are required to account for the GST payable on the sales you make in the reporting period in which you receive payments for them. Bank all your cash income into your business account to ensure accurate record-keeping and GST reporting. There are 2 accounting methods to choose from for GST.
Weekly, fortnightly, or monthly (based on when you pay your employees)
Record wages and salary payments to employees.
Calculate PAYG withholding and super amounts.
Keep a record of details that demonstrate:
- You provided your employees with a choice of super fund.
- How you calculated the super amount you paid for each employee.
- The PAYG withheld amount and super for each employee.
- When you made the payments.
Report and pay your employees’ wages and salaries, PAYG withholding and super through an STP-enabled software solution.
Monthly
Prepare your reconciliation statement. If you are registered for GST, your BAS may be due. If you are registered for PAYG withholding monthly or PAYG instalments monthly, your BAS may be due. You need to check fuel tax credit records to ensure that they are accurate if filing your BAS monthly. If you are not registered for GST, you need to check your turnover in case you need to register for GST.
Quarterly
If you are registered for GST, your BAS may be due. Check that fuel tax credit records are complete and accurate if filing your BAS quarterly. Complete PAYG withholding for your BAS. Complete PAYG instalments for your BAS or your instalment activity statement in case you are not registered for GST. Your petroleum resource rent tax (PRRT) instalment statement may be due.
Yearly
You need to make a summary of expenses and income for the year and create a profit and loss statement.
- Do a stocktake (if you have a significant value or amount of stock).
- Summarise records of creditors and debtors.
- Ensure you have records you need to work out a capital gain or loss for capital gains tax – if it applies.
- Complete records of depreciating assets.
You are required to reconcile and summarise your employees’ STP information through your STP-enabled solution by making a finalisation declaration by 14 July each year, or as soon as it’s ready. If you are not reporting through STP because you have been granted a deferral or exemption from STP, you’ll need to release payment summaries to your employees and file your annual PAYG withholding report. If you run a private company, ensure you have records of all dividends, drawings, and loans. By the relevant due dates, file all required obligations:
- Reports and returns for businesses
- Due dates for tax professionals.
Conclusion
To ensure accurate record-keeping, you can get small business bookkeeper services for your business. Get in touch with us for reliable bookkeeping services.