Ensure you understand the record-keeping requirements for your business and make it a priority to keep accurate and complete records. By doing so, you can avoid penalties that may apply. 

The following tips, which are based on common record-keeping errors, can help you get it right. 

• Keep accurate records of all cash and electronic transactions. 
• Complete regular reconciliations of your sales (both cash and EFTPOS) and enter the amounts into your main business accounting software system. Depending on your business, this may be daily, weekly or monthly. 
• If you have expenses that are both business and private use, work out and record the business portion accurately. 
• Ensure you have sufficient records to substantiate business expenses claimed as tax deductions. 
• Don't use estimates to prepare your tax returns, BAS and other reports. Ensure you have complete and accurate records to substantiate the information you include in them. 

You can also use the ATO’s Record keeping evaluation tool to find out how well you’re currently keeping your business records. 

If you aren't sure how this information applies to your situation, ask your registered tax or BAS agent, or contact the ATO for help. The ATO will help you get back on track if you make an error.