There are a number of reasons why effective business accounting systems are important:
- The right system can give you much more control and greatly ease your data entry wherever you are and whatever technology you are using.
- It is a legal requirement to keep records that are accurate and true for a period of at least 5 years from the date that the documents were prepared, obtained or the transaction completed, whichever occurs the latest. All records must be in English or in a form the ATO can understand.
- It makes it cheaper, easier and quicker to complete activity statements and in turn your annual tax returns.
- It enables businesses to monitor the health of their business and in turn make sound decisions.
- It helps businesses manage their cash flow.
- It demonstrates the financial position to banks and other lending institutions.
- It enables business to make better use of their tax adviser.
- It shows the basis for any amendments that may need to be made in activity statements or tax returns.
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