In the world of business, there's a legal duty to maintain your financial records.
These records are susceptible to damage or loss if not stored securely. The consequences of such loss can ripple through your business operations.
The loss or damage of your records can affect your ability to:
Report your business income accurately.
Claim legitimate business deductions.
Fulfil other tax, superannuation, and employer obligations.
Safeguarding your systems is paramount. You must maintain security and accuracy, control who accesses your data and protect the flow of information. Strong passwords and vigilance over incoming and outgoing data are your allies in this endeavour.
Cloud options ensure your records can be recovered even in the face of unexpected calamities. The effort spent on prevention far outweighs the challenges of reconstructing lost records.
To mitigate the risk of damage or loss:
Store your business records securely, shielding them from potential threats like theft, fire, or floods.
Regularly create backup copies of electronic records and store them safely, preferably off-site or in the cloud.
In unfortunate situations where your records are lost or destroyed, all is not lost. You may still be eligible to claim deductions for certain expenses if you can meet specific criteria. Having a complete copy of the lost document or demonstrating reasonable precautions to prevent its loss can be your ticket to securing those deductions.
Remember, the responsible handling and secure storage of your business records aren't just tax necessities; they are safeguards for the longevity and resilience of your business in an unpredictable world.
Got questions? Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
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