Yep, you’ve got to hold onto your tax records. Yep, for FIVE YEARS. Nope, you don’t need to keep the paper.
The Tax Office is fine with you keeping your records digitally, electronically, whatever you want to call it. There are a few rules with that, but not too much to worry about.
So the burning question is – how do I get rid of the paper?! Well, in fear of being clichéd, there’s an app for that.
There’s lots of app solutions in the marketplace which digitise your paper records. They all work on a similar basis...
The solution works well. Once the app is installed and linked to your software you simply take the photo and it automatically uploads to an electronic in-tray.
A lot of accounting software can even create a bill by reading the details from the photo (yes they really can do that!), and also link the receipt to your bank feeds if you have them running.
Seriously though, the Australian Tax Office states it is satisfied for your business records to be stored electronically, provided that the documents are clearly legible and represent the original version. What better way to save the records than by a crisp, clear photo that doesn’t fade, and linked permanently to your accounting software so it can’t get lost.
Talk to one of our accountants at Bosco Accounting to discuss a solution right for your business.
As always, we’re here to help.