Taking care of your taxes starts with good record keeping. This includes all business transactions, income, related costs and potential deductions. Keep invoices and receipts for five years and store these records electronically or on paper – or both.
Making backup copies of all your records will protect your business if your laptop or filing cabinet is lost, stolen or destroyed. Keep a full set of electronic documents on a separate hard drive or data stick. Or you can store it online with Dropbox, Google, Microsoft, Apple or your provider of choice. And keep paper copies of important documents at a trusted relative’s house, in a safe deposit box or other secure location.
You don’t have to work out the amount of tax you need to pay. The ATO will do this for you when you lodge your return.