The Quinn Group | The Quintessential Brief

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September 2008	Bookkeeping	5 Important Reasons to Keep Good Business Records
	Investing	Before You Invest In Property
	IR Law	The new Government's Industrial Relations Legislation
	Corporate Law	Shareholder Agreements - protecting your investments
	From the Desk	From the Principal, Michael Quinn
	Important Dates	Dates to remember this quarter
	At Quinns...	An admission, a proposal and an excursion!
	Client Spotlight	Southern Cross Masonry Contractors (Aust) Pty Ltd

5 Reasons Why it is Important to Keep Good Business Records

The main reason that it is important to keep good business records is that it is a legal requirement. The law states that in general, business records are required to be kept for five years after they are prepared, obtained or the transactions are completed whichever event occurs later. Companies, and businesses with employees, are required to keep their records for 7 years. It is also a requirement that the records be in English, or a form that the tax office can access and understand in order to determine your tax liability. You may be required to keep some records for a longer period of time if, for example, they contain information that may be used in a later tax
return or are related to capital gains tax liabilities.

Apart from the legal requirements, there are other reasons why you should endeavour to maintain good business records. If your business has a good record keeping system it makes it easier for you to:

complete your activity statements and prepare your annual income tax and fringe benefits tax returns
monitor the current situation of the business and assist you to make sound business decisions, such as keeping track of debtors and creditors to ensure that your cash flow is adequate
demonstrate the current financial position of the business to banks, lenders, prospective buyers and other interested parties
obtain maximum value from your accountant/tax advisor. If you can present your advisor with well prepared records and reports your money is spent on them providing advice on how to improve the business rather than sorting through shoe boxes of receipts
present necessary documentation to support any applications for amendments to activity statements or tax returns that have already been lodged

At The Quinn Group we can provide you with suggestions on how to improve the keeping of your business records. Our team of accountants can also assess your current records and provide a range of business development options tailored to your situation.

If you would like to discuss your business' bookkeeping with us we can be contacted on 1300 QUINNS or click here to submit an online enquiry.

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Disclaimer: The contents of this document titled “The Quintessential Brief” (the ‘Material’) are provided as general information only. It is not intended to be given as advice and should not be relied upon as such. If you are concerned about any issue raised by the Material then you should seek your own professional advice. No warranty is given in relation to the accuracy, currency or completeness of the Material. No reader should act on the basis of any matter contained in this publication without first obtaining specific professional advice. Where applicable, liability is limited by the NSW Solicitors Scheme under the Professional Standards Act 1994 (NSW), and other relevant state legislation. The Quinn Group respects your privacy. Should you not wish to receive this newsletter in the future please contact us on 1300 784 667.