welcome to Evolution Cloud accounting training videos hi I am a viewer artificial intelligence video educator in

today's video we will show you the corals that apply to business record keeping and the

ATO requirements for businesses to keep accurate and compliant records businesses are legally required to keep records of all transactions

relating to their tax and superannuation Affairs as they start run change or sell their business activities keeping accurate

Financial records is an essential aspect of running a business some of the key benefits

of good record-keeping are measuring business performance tracking cash flow and profitability meeting tax and superannuation obligations demonstrating financial position

to lenders and investors claiming tax deduction and paying only the correct fare of income tax to

the ATO in this video the ATO Education team will cover the following topics the importance of

keeping records for your this the types of Records businesses are required to keep and

for how long what makes a record valid to the ATO let's get started if your activity has commercial characteristics

you intend to make a profit and your activity is planned organized and carried on

in a businesslike manner then you're most likely in business you must declare any business income you earn and

you can generally claim deductions for expenses you incur in running your business keeping Good Records makes

it easier to do your tax in fact there are many other benefits with keeping Good Records you

can monitor how your business is doing man G cash flow and show you financial position

to Banks and money lenders keeping Good Records helps you to have a good understanding of the financials of your

business which is crucial to the success of your business for tax you must keep most records for

five years Nails it expenses to prepare your activity statements and your tax returns and to meet other

tax obligations generally records you need to keep include income and sales records of all sales and barter transactions for

example invoices receipt books cash register tapes and records of cash sales you'll also need to keep records

of all business expenses including cash purchases records could include receipts invoices check Bart's credit card vouchers and

Diaries to record petty cash expenses and you should keep all bank records such as bank statements and loan

documents other records you need to keep include details of what assets you buy and what you

spend on those assets an asset register can help you keep track of these expenses you'll also need to

keep copies of contracts and franchise or other agreements as well as you and records including it lists

of creditors and debtors and worksheets were depreciating assets for certain work car and business travel expenses it's not

always possible to get a receipt but you can still claim the expenses as deductions as long as you

record the details of these expenses in a diary or log book you may have to keep logbooks lease or

loan documents or yearly odometer readings for Motor Vehicles you use in your business for employees you need

to keep records of wages allowances and other payments you made to them as well as

superannuation guarantee records including payments you made and records that show you have met your choice of Superfund obligations

you also need to keep records of fringe benefits tax calculations worksheets declarations elections and supporting details as well

as copies of tfn declarations or withholding declarations fuel tax credits are amounts you climb for the

fuel tax included in the price of fuel you acquire and use for your business activities if

you're eligible to claim you will need to find out the rate you can claim the rates vary

depending on what fuel you use for your business activities your business must be registered

for both fuel tax credits and GST before he can claim fuel tax credits to work out your fuel

tax credits and to support your claims you need to keep records showing the date you acquired the fuel the

quantity and type of fuel you acquired and the business activity you used it in you should keep

records from the start of your business activity so you are ready to calculate and

claim your fuel tax credits the ATO has developed an electronic tool to help you work out your

record keeping needs based on the information you provide the record-keeping evaluation tool will give you

a list of Records you must keep and a report that shows how well you're keeping

your records it's a clever tool to where it can the report will also include suggestions for improving your record

keeping the main GST records you need to keep our tax invoices and adjustment notes

if you're registered for GST you need a tax invoice to claim GST credits included in the price of any

good or service you buy for your business the cost more than a certain amount

any tax invoices you issue to your customers or receive from your suppliers must contain certain information to be Ballard

it must show the date of the document is issued and it must contain the is name

and ABN as well as a brief description of what is sold including the quantity

and the price of what is sold it must also show the extent to which each sale is a taxable

sale this can be shown separately or as a statement such as total price includes GST you must

keep written records in English if you keep electronic records on your computer they must be in a form

that you can easily access and convert into written English you must keep any account books records or

documents related to preparing your tax return for at least five years after they are prepared obtained or

the transaction is completed which ever occurs last thank you for watching if you are watching this video

from our YouTube Channel please don't forget to hit like And subscribe for more training videos this is a

view artificial intelligence video educator yeah we go yeah we go