Documentation is at heart of accounting. However question arises as to the time period for which the tax records needs to be maintained.
How long to keep bookkeeping documents :
There is a requirement that you need to keep your tax records for five years from the date you file your tax returns.
However there are certain cases in which you are required to keep the tax records for enhanced time period. For example in case you are availing depreciation on assets, you need to keep records for more than 5 years. You need to keep proof of purchase of asset for period more than 5 years.
Medium of Storage: You can keep the records in electronic form as well. However the same should be easily accessible and should be in English Language.
You need to have a good record keeping system in place in order to avoid any trouble in future. Absence of record keeping can lead to heavy penalties as dis-allowance of tax deductions.
For More Information Visit Us : Accounts Outsourcing Services
Many of my prospective Australian clients ask me if it is Legal to Outsource my Bookkeeping work?
The answer to same is definitely yes.
You can outsource bookkeeping work offshore to get benefits of outsourcing provided you take adequate care and inform the owner of the information regarding the outsourced work.
A written letter of approval is required from the client giving a consent for outsourcing the work to third party.
However the organization outsourcing the accounts is required to take due care and needs to do due diligence in order to ensure all the pieces fall in correct place.
Here are some of the points which the outsourcer needs to in order to reap all the benefits by outsourcing the job offshore:
- Quality of services:
The Outsourcer needs to be assured of the quality services from the outsourced organization.Quality control procedures should be in place with the third party service organizations to ensure qualitative work.
- Integrity of third party service provider:
The outsourcer needs to ensure that there are proper non disclosure agreements in place for avoiding misuse of information.
- Professional Expertise:
The outsourcer needs to be ensured of the professional expertise of the service organization.
- Resources of the Service Provider:
The performance of the third party service provider would depend upon the resources of the service provider and the infrastructure available with the service provider.
- Monitoring of work:
Outsourcer needs to monitor the work in order to ensure that the objectives of outsourcing are achieved.
Best luck for your new outsourcing relationship!!
The article is written by Rushabh Shah, he is operations manager at Rayvat Accounting. Rayvat Accounting provides Outsource Accounting and bookkeeping services at low cost to Australia and US based clients. For no obligation free trial of Accounting services contact us at firstname.lastname@example.org
There are ample of applications available having a variety of capabilities and features based on business requirement.
The few example of applications are QuickBooks, Quicken, Net suite, MYOB etc.
QuickBooks is widely used by Accountants worldwide. QuickBooks is accounting application which includes services that aid with receiving customer payments, making superannuation payments, remote payroll assistant and outsourcing, bank integration as well as integrating Google tool for marketing.
It may be customised internally by the organization or the company using it or may be purchased from the third party package. QuickBooks Bookkeeping can improve email functionality through Outlook express and Microsoft Outlook. The application has the capacity to generate more than 100 reports that permit the business owners to go through year over year income and expenses trends. Setting up this application right from the beginning will save your time and allow you to get more information through it.
MYOB is an important accounting program for Bookkeeping in Australian Market. It has its own powered services which gives the services that aid with bank integration, bill paying, Accounts Outsourcing management as well as receiving the payments. It is very easy to use and flexible. In MYOB the data can be hosted in local network as well so the owner can always access it even if the internet is down.
Both QuickBooks and MYOB include a company data auditor which makes the checking system before tax is prepared. Both programs give the recurring transaction. Both programs enable you to modify and delete previous pays if it is required. The security in both programs is good.
Rayvat Accounting provides you the Bookkeeping Services for your SME business on both this applications to help you know your business better by better accounting.