I’m a big believer in the ‘paperless office’ for Waterhouse Lawyers, but how does the ATO feel about it?
In another article, I looked at how long you have to keep your tax records. Now I look at the way you actually have to keep these records.
When it comes to your business tax records, the tax law simply requires that you keep these records in writing and in English, or in a form that is convertible to English. This means that you can keep these records in paper form or electronically. If they’re electronic, then you should make sure that they are an accurate copy of the original.
There are many benefits to storing your receipts electronically:
Before you convert your receipts, think about the following:
If you want to claim a deduction but you don’t have a receipt for that transaction, then you still have some options. For example, if you’ve paid the expense electronically, your bank statement will be useful to support the transaction so long as it contains enough details. In other circumstances, a diary record of the expense may be sufficient. Either way, you should make sure you have a record of the supplier, the date, the amount, and what goods or services you purchased.