How to Keep Records for Your Small Business

The Importance of Keeping Records for Small Businesses

Firstly we'll explore the importance of keeping records and why maintaining accurate records isn't just a good business practice; it's a necessity, especially for small businesses in Australia. Here's why:

1. Effortless Tax Preparation

Accurate records kept with the right accounting software can simplify the tax preparation process completely, helping you correctly report your income and expenses. 'Make tax time, relax time' with Thriday - equipped with smart GST recognition and automatic transaction reconciliation to automate the preparation of tax estimates, summaries and easily lodge BAS returns all within the app. Save yourself the headache of potential penalties and ensure you're always ready in the case of any audits with all your financial records securely kept in the same user-friendly platform.

2. Performance Evaluation and Data-Driven Decision-Making

Comprehensive record-keeping can help you monitor income and expenses, offering valuable insight into your business's financial health and empowering you to make better-informed decisions. Whether it's about pinpointing opportunities for cost reduction, revenue growth or investments - your records can provide the necessary data. With automated accounting, Thriday eliminates financial admin by automatically generating key financial reports such as a balance sheet, income and cash flow statements, chart of accounts and much more to evaluate your business' performance and take your business decision-making to the next level.

3. Regulatory Compliance

The Australian Taxation Office (ATO) mandates that businesses keep precise financial records. This includes retaining employment tax records for at least four years and other financial documents for at least five years. Proper record-keeping ensures you're in compliance and sidesteps legal complications.

4. Facilitating Financing

When it comes to securing loans or attracting investors, financial records are often a prerequisite. Well-kept records can expedite this process, making it easier to secure the funding you need.

Ultimately, diligent record-keeping is beyond crucial for tax preparation, performance assessment, informed decision-making, regulatory compliance and securing financial backing. By integrating a platform like Thriday into your business operations, you can streamline your bookkeeping and storage - enjoying the benefits of a robust record-keeping system and the power of automated accounting all in one user-friendly financial management platform.

Records You May Need to Keep

Now that we understand why meticulous record-keeping is so essential - here's a rundown of the types of records you should be keeping for your small business:

Invoices

Whether you're sending them out or receiving them, invoices are vital. They form the backbone of your profit and loss statements and are a focal point during ATO audits. If you're storing records manually, make sure to keep both payable and receivable invoices, as they serve as your expense and income documentation, respectively.

With Thriday's instant invoicing suite, you can generate, send, and securely store your invoices in an all-in-one platform seamlessly integrated with the rest of your banking* and accounting, making it easier than ever to streamline your financial tracking and ensuring you're always ATO-compliant.

Receipts

All business-related receipts should be kept to substantiate your tax returns, deductions, and financial statements. While hard copies are acceptable, digital storage can make your life much easier, especially when it comes to monthly reporting and tax filing with the ATO.

Thriday is built so you can easily scan, send, and save receipts on the go. Take a photo of your receipts, and the platform will automatically reconcile and store them so they're never lost come tax season for those precious personalised deductions.

Bank Statements 

Retain all your bank statements for a minimum of five years. This should include cancelled cheques and any proof of electronic funds transfers, as they are crucial for financial tracking and auditing by the Australian Taxation Office (ATO).

Employee Records

Maintain detailed records of your employees, including their names, addresses, and contact information. Also, keep timesheets and pay stubs for at least four years to comply with employment tax regulations set by the ATO.

Tax Forms and Returns

Keep copies of all tax forms you've submitted to the ATO, as well as your tax returns and financial statements. These are essential for future reference and legal compliance.

Thriday's BAS lodgment feature simplifies the tax process, allowing you to easily lodge your BAS and tax forms to the ATO in minutes within the app, with reminders to help you meet all deadlines and avoid penalties.

Contracts and Legal Documents

All contracts, including loan agreements and mortgages, should be kept safe. These documents are important for legal compliance and financial planning.

Email Correspondence

Don't overlook your business-related emails. They can serve as important records for various transactions and may be required for compliance or legal reasons.

With a comprehensive system like Thriday, you can effortlessly manage your critical financial data in one place, ensuring you're always in compliance and well-prepared in the event of any financial scrutiny.

How to Simplify Record-Keeping for Small Businesses: A Guide

Managing regulatory compliance, tax preparation, document organisation, and performance evaluation can feel endless - we understand that for small business owners, there is so much to do and so little time! 

Here are the keys to streamlining the process so that your record-keeping is kept up to par in the easiest way possible:

Embrace Digital Document Management

The era of paper clutter is over. Digital document management is the way to go, and Thriday makes it effortless. Thriday harmoniously brings banking* and accounting together - meaning your automatically categorised transactions, quotes, invoices, tax summaries, financial reports and more are all stored securely in one simple-to-use integrated cloud-based app for quick retrieval anytime, anywhere, on any device.

Understand Record Retention Rules

Different types of records have specific retention periods. For example, you should keep employment tax records for at least four years. Learn more about the specific records you need to keep and retention periods here.

Automate Accounting with Thriday

When it comes to record-keeping, choosing the right software is a game-changer. Thriday automates the tracking and categorisation of your financial transactions to generate the key real-time financial reports your small business needs, freeing you from manual data entry and calculations. With access to clear financial statements updated immediately as transactions occur, Thriday offers valuable insights into your business's financial health that you can leverage to take your data-driven business decision-making to the next level.

Be Meticulous in Transaction Details

Record every business transaction with the utmost precision possible - capturing all the necessary details like date, amount, and purpose to ensure your records are comprehensive. With Thriday, you can simply run your business as usual with your integrated bank accounts*, and this is done automatically in the platform for you. Discover the power of Tireless Transacting to eliminate financial today!

Keep Records Updated

No matter how you decide to keep your records, it's crucial that they are kept updated. With your banking* and accounting seamlessly integrated in one place with Thriday, this is done in real-time as transactions happen, ensuring your financial data is always current and reliable.

By adhering to these best practices, you can simplify the complex task of record-keeping, ensuring you're always in compliance and well-prepared for any financial scrutiny. With the right strategies and tools like Thriday, record-keeping can become a hassle-free aspect of your business operations.

Thriday: Your All-in-One Record-Keeping Solution for Small Business

Thriday is more than just a record-keeping platform; it's a comprehensive all-in-one financial management solution designed to simplify and optimise your small business's record-keeping and accounting needs. 

With an integrated business transaction account and a VISA Debit card*, Thriday ensures that your banking* and accounting activities are seamlessly organised in one platform, eliminating the need for separate financial administration. 

Here's how Thriday revolutionises your business's financial processes:

Automated Bookkeeping and Record-Keeping

Thriday's AI-powered platform automatically reconciles and categorises all your transactions, creating essential accounting reports that your business relies on. From real-time cash flow and tax forecasts to balance sheets and income statements, Thriday takes care of the intricate details of record-keeping, saving you time, money, and headaches.

Instant Invoicing for Quick Payments

Thriday's Instant Invoicing feature allows you to create and send professional invoices in a matter of seconds, whether you're using a mobile or web app. Speed up the payment process whilst ensuring that your invoicing records are always up-to-date, organised and easily integrated with the rest of your financial data.

Effortless Receipt Reconciliation

Keeping track of receipts is a crucial part of record-keeping, especially when tax season rolls around. With Thriday, you can easily scan, send, and save your receipts on the go. The platform automatically reconciles and stores your receipts, ensuring they're readily available when you need them for tax deductions.

Quick Quotes with a Tap

Thriday's mobile app allows you to effortlessly send professional quotes via email or SMS. Add new and saved billable items with custom units of measure, making the quoting process as straightforward as possible.

Lightning Lodgment for Timely Tax Submissions

Thriday's Lightning Lodgment feature keeps you informed about upcoming, due, or overdue lodgments and generates the necessary reports within the platform. You can easily lodge your Business Activity Statements (BAS) to the Australian Taxation Office (ATO) in minutes, ensuring your tax records are always in order.

Gone are the days of expert record-keeping requiring you to juggle multiple spreadsheets, applications, or bank feeds. With Thriday, your integrated business transaction accounts* cover both income and expenses, and the platform takes care of the rest. 

Thriday automatically reconciles transactions to generate all the critical financial reports - and with all your financial data securely stored and manageable in one user-friendly platform, record-keeping is made a breeze to free you from the burden of financial admin. ‍

Say goodbye to the stress of manual record-keeping and step into a world where financial management is straightforward and hassle-free. Experience the Thriday difference today!