Many small businesses have a difficult time with record keeping.
It’s easy to see how this happens. You become busy, grow quickly, are customer focused and the financial records get dumped in a box or a file somewhere to be sorted out when you get the time. Unfortunately, as time goes on it gets harder and harder to sort out your paperwork.
Record Keeping Requirements under the law
Under Australian Taxation law, you need to keep your financial records for a minimum of 5 years. Under Corporations law, records need to be kept for at least 7 years. It’s just not shrewd business management to ignore your record keeping. You need to find the time to source and implement an adequate system that is secure and allows easy access to your records.
Documents you need to consider filing include but are not limited to;
- receipts
- invoices
- bank statements
- timesheets
- supplier invoices
- quotes
To take all this paperwork into account you don’t need a complex system, you need a smart system that works for you, saves time and optimises your productivity.
Before running out and buying filing cabinets and software…
What are you Storing?
it’s not just financials, you will have HR documents, Insurance, Leases, Contracts etc. You might consider a filing system implemented for each area. ie:- a Payroll Area, Supplier Area, Customer Area or look at a system that can bring all that together
How do your documents exist?
Are the paper based, digital or both. A modern system needs to cater to both digital and hard-copy documentation. Digitisation can be costly and time consuming and another one of those jobs that gets put off.
Adequate Recording of financial information
Do you have a decent accounting system that records all your transactions. Do you have the same for payroll? Equipment? Are there random spreadsheets everywhere?: A general rule-of-thumb when looking for a document should be – can I locate it on my recording system first?
Filing your accounting documents
What system works best for you? A horizontal system with folders? A cabinet with tabs or a full cloud E.R.P system. A well planned, flexible system reduces the risk of data loss as well as saving you time.
Digital information
How do you store your digital information? Are you double handling your physical files? Consider an optimised digital management strategy that incorporates policies around privacy, data-corruption and software management.
Archiving and storage and backup
This is an important thing to think about, your sensitive financial information should only ever be stored in secure locations. where do you plan on storing both your digital and physical files.
A shoe-box just isn’t going to cut it in 2021!
You don’t need to feel intimidated by the prospect of good record keeping. Exceptional Accounts is a high technology accounting business that can help you make the smart, safe and secure choices. We can lower costs for your business and in many cases allow you to spend more time on your business and not in your business increasing your income. Rather filing things
Call Now to start your business on the right track : 0402 872 744