Record keeping for individuals- Australian Taxation Office
Keeping financial records for tax time needs to be easy. Here we give you smart tips for record keeping so you meet Australian Tax Office guidelines.
It’s that time of the year when you are probably busy gathering your year-end receipts and income and deduction information together to have your income tax return prepared.
Now is a good time to ask yourself, do I find this process easy? Do I have adequate systems in place throughout the year to make this process less stressful?
If the answer is no, then the start of the new financial year may be the perfect time to set some processes in place to make the next financial year ahead your best yet!
Here are some great ways to streamline your record keeping and take the stress out of the end of the financial year. And remember, you need to keep your records for five years.
Specific Folders in your home office
Organising your home office can make it easy to readily locate any bills paid for rental properties or provide a spot to put parking or travel receipts. It’s easy to forget the items you paid out for 10 months ago so why not take the time to set up some clearly labelled folders for your tax related info. And don’t forget, if you’re purchasing new folders to keep your tax receipts – you can claim that cost as a deduction!
Electronic Storage of your documents
Records can be kept in an electronic version, so when you receive that email notification about the work related purchase or donation you just made – move it straight into a sub folder in your email labelled TAX RECEIPTS.
Keep a diary or note book in your car to record work trips.
Using the cents per kilometre method to calculate your work related travel is one method that can be used to calculate your deduction at item D1. Up to 5,000km can be claimed without receipts so why not accurately track those trips to a professional development day or to do the office banking in a note book with the date, purpose and kilometres travelled. That way you can make sure you’re tracking all those trips.
Don’t forget generally it’s a requirement by law to keep your tax records for five years! So don’t throw away all those receipts once you’ve had your tax return completed.
What can I claim in my Occupation?
Did you the Australian Taxation Office (ATO) has deduction information related to specific industries and occupations on their website?
View the website by clicking this link: Deductions for specific industries and occupations
We will discuss this with you at your tax interview.
We are taking appointments now for Interview, Preparation and Lodgement of your 2015 individual tax return. Patrick Rowan & Associates have qualified, experienced Tax Specialists who will ensure you get the best result! T: 5221 7655 for an appointment today!