If you have just started your new business and looking for the list of actions that you need to take for record-keeping, then you are at the right place. In this article, we will discuss the records that you need to maintain for start-up activities that you undertake as a new business owner. Let’s dive in.
Previously owned goods brought forward as trading stock into new business
In case you decide to bring forward the previously owned goods as trading stock into your new business, then you can take the benefit of GST credits and income tax deduction for it. But you should be able to substantiate your claim with proper, accurate, and complete records.
The record documents, in this case, should be able to show the market value or cost of the brought forward goods as trading stock into new business at the time when your new business starts. Documents can include original purchase invoice or proof of the payment such as bank statement, receipt, etc.
ABN registration details
Now when you have started your new business, you are required by law to keep your details of ABN (Australian Business Number) up to date, which includes the following:
- Up to date business contact details including email address and relevant phone numbers.
- Main business activity that you are going to perform through your new business.
- Complete business address including main business address, postal address, and any other additional location address.
- Up to date business associate details including directors, public officer, shareholder, trustee partner, etc.
In case there are any changes to your ABN details, then you need to inform ATO within 20 days of you being aware of the changes.
Evidence that you need to show to prove you are in business
So, you have applied for ABN, but for getting the approval you will have to show that you have actually started the business and are entitled to ABN registration. For complying with the requirements of ABR i.e., The Australian Business Register, which stores all the business and organizational details, ATO can contact you as a new business owner for confirming your ABN entitlement. ATO can ask you to show the following evidence for confirming that you are carrying out the business:
- Details of advertising, social media account, or website address for the business. 2.
- Proof of purchase of business cards or other stationery items for your new business.
- Proof that you are obtaining a business license, or business insurance to operate like public liability insurance, and professional indemnity insurance.
- Proof of leasing or purchasing of office premises, equipment, or stock for your new business.
- Evidence of issuing of quotes, or bidding for work, applying for finance, or buying a business.
- Proof of consultation with financial, business, or tax advisors.
It is recommended to also check the record-keeping requirements of the organizations you are dealing with. For example, if you are registering your business with ASIC (Australian Securities and Investment Commission), then you will have to follow their record-keeping requirements as well.