Frequently Asked Questions And Things To Know
What Is Involved in Keeping Business Records
Keep track of the gross income your business earns. Gross income is your total income before you deduct the cost of goods sold and expenses.
Your income records should show all the following information concerning your income:
Always get receipts or other vouchers when you buy something for your business. The receipt or other voucher should show:
It is also possible that a seller or supplier may not provide you with a receipt. In such a case, write the name and address of the seller or supplier, the amount paid for the goods or services, the date you made the payment and the details of the transaction in your expense journal.
Motor vehicle records
Full logbook - The best evidence to support the use of a vehicle is an accurate logbook of business travel maintained for the entire year, showing for each business trip, the destination, the reason for the trip and the distance covered.
You can deduct motor vehicle expenses only when they are reasonable and you have receipts to support them. To get the full benefit of your claim for each vehicle, keep a record of the total kilometres you drive and the kilometres you drive to earn business income.
For each business trip, keep a log listing the following:
Helpful Links for Every Business Owner