Record Keeping

Keeping accurate and up-to-date records is important for a business to succeed.  Record keeping is one of most important management tools that a business should posses and, therefore it should be allocated due importance. Any record keeping system should be accurate, reliable, easy to follow and consistent ( Asefeso 2012).Good record keeping is vital in regards to meeting the financial commitments of the business by ensuring that the basis used is very simple and easy to follow.  Record keeping is also important as it helps monitor and record the business activities and requirement under the taxation laws.

Business records can be kept online, computerised on a spreadsheet or manually depending on the type of business.  To ensure that the process is not daunting, I will break things down into a series on straightforward and manageable tasks. I will also hold on to my receipts, bank statements and invoices in case I ever need to outsource the work.

In order to improve my business l have decided to internally manage my record keeping. This will help my business look more professional as well as attract foreign investors.  I choose to manage my record keeping internally as a means to cut cost as well as ensure the process is done thoroughly. Managing your tax affairs and obligations as an employer is an integral part of your business. In Australia, business's tax obligations and entitlements vary according to the type of work you do, the number of staff you employ and the kind of benefits you offer. Operating a business as a sole trader, company or a trust will have different tax implications, and it's important to consider these implications when you are choosing the best legal structure for your business.

The first thing I would consider is getting an Australian business number (ABN). This will help me to manage my tax and business obligations ( Parsons 2017).The number is used as a reference by the Australian Taxation Office to track my business. One also requires this number when dealing with other businesses and government departments.  Under this tax law anyone carrying on a business must keep full records to explain all transactions. The records have to be kept in English language and must be clear enough for the Tax office to ascertain the correct taxable income of the business( Deutsch 2017).

It is also important to understand the Tax obligations for paying staff under the country you choose to operate in. As an employer, you must be aware of your tax obligations when paying staff, including pay as you go, withholding tax and superannuation. Depending on the size of your business, you may also need to pay payroll tax (Gitman 2008).  As an employer, it is important for you to understand employment-related legislation and your obligations towards the people who work for you.It is also important to analyse Issues such as tax and pay, annual leave and time off for your employees in order to have a smooth-running business. The rights if the employees are covered by employment legislation and must be applied fairly to employees across your business. Observing the rules also helps to keep staff morale high and reduce staff turnover.

 

 

 

 

 

 

 

 

References

Tomasic, R., Bottomley, S., & McQueen, R. (2002). Corporations law in Australia.           Leichhardt, NSW: Federation Press

Asefeso, A. (2012). CEO guide to doing business in Australia. Harlow: AA Global Sourcing.

Gitman, L. J., & Joehnk, M. D. (2008). Personal financial planning. Mason, OH:   Thomson/South-Western.

Parsons, R. W. (2011). Income taxation in Australia: Principles of income, deductibility and        tax accounting. Sydney, NSW: Thomson Reuters.

Deutsch, R. L., Friezer, M. L., Fullerton, I. G., Hanley, P. J., Snape, T. J., & Institute of    Public Accountants (Australia). (2017). Australian tax handbook: Tax return edition      2017