Blacktown Bookkeeping on ATO Tax Audit Records

By law, you are required to keep easy to read and understandable records in case of an audit by The Australian Taxation Office or ATO. Keep in mind you should hold onto records for at least five (5) years after they are prepared, obtained or the transactions completed (whichever occurs later). You could face penalties from the ATO because this is legally required. They should be in English and easy to understand when they decide to audit you.

Professional bookkeepers like Blacktown Bookkeepers are the best way to accomplish this task. They are aware of the legal requirements and know how to keep everything organized in case of an audit. You won’t have to worry about paperwork again, which is why many businesses have decided to take this path.

It is much easier for you to hire a bookkeeper because:

* Business performance is easier to track.

* Your BAS statements get completed.

* Lenders and investors are easily able to see your financial situation.

* You will know how many expenses you have and how much profit you are making.

You will have more time to handle the part of the business that makes you money, like concentrating on sales, expansion or improving production. Once you have hired a bookkeeping service, you will quickly see how easy it is to track expenses, get monthly profit and loss statements and have a system that is easy to understand. For most businesspeople, they are happy to turn over receipts and let the bookkeeping service handle the rest.

Receipts can be easily sorted and accounted for, which is something that most business owners hate to do. Some of them will stick them in a drawer, meaning to get around to them at a later time. With a bookkeeper, your personal and business receipts can be easily separated and your business will operate more efficiently, giving you more freedom from worry and miniscule tasks.

Professionally prepared financial statements are done accurately and quickly. Profit and loss statements can help you make corrections quickly to make more profit.

The ATO will only recognize legitimate receipts for expense deductions, meaning they need to be completely backed up with proof. A bookkeeper can make sure you are properly organized in case an audit occurs. This can relieve you of a lot of worry and help you operate your business more effectively.