3 Reasons Why You Need to Keep Invoices and Receipts

Ever wondered why we, as bookkeepers, hassle you for your invoices and receipts?

Well, it’s not just because we love the paperwork or enjoy chasing your tail—trust us, we’d rather be grabbing coffee with you than doing either of these things—it’s because of three main reasons: audits, compliance, and budgeting. While it’s not super thrilling, it’s all important and we’re here to keep your business in check!

So, keep reading if you’d like to learn more about why you need to keep your invoices and receipts.

Audits
In the event you’re ever audited, the ATO is going to want to see documentation to verify any claims you’ve submitted.

We all know that the process can feel like you’re pulling teeth, which is why it’d be a lot easier if you kept all your invoices and receipts in one spot instead of searching for that piece of paper for that claimed expense. In fact, there are software tools out there that allow you to store such information in one spot—how handy is that?!

Plus, if you’re a not-for-profit organisation and have your accounts audited as part of your policies and adherence to the board, having that visibility for all parties is so much easier when documentation is stored within the software.

Compliance
Of course, the main reason to keep your invoices and receipts is to ensure your business is compliant—especially when it comes to Goods and Services Tax (GST).

GST is often seen as a complicated beast as some things will have GST while others won’t. For example, if you’re a café owner, the milk and bread you purchase won’t have GST on them while items such as sugar and flour will. If you run a trade business and hire contractors, we’ll need to know if they’re registered for GST or not too.

Basically, keeping your invoices and receipts will ensure your business remains compliant—plus, it makes your life and the process a lot easier!

Budgeting
When it comes to budgeting, your invoices and receipts are a great way to ensure your data is accurate—it’s easier to work out a budget with these papers!

For example, your profit and loss expense item for insurance might have a policy for business insurance and worker’s compensation. With this, it’s important to have the invoices on file and supply them to help you budget the right amount and keep you on top of the policy due date.

If you’d like to learn more, please contact our friendly team here.