Ahhh…lost or faded receipts! Can I still claim a deduction? 🧐

We all know how easy it is to lose track of your business expenses…, and without substantiation businesses can lose that deduction, which would have effectively reduced the business tax, either in the current year or may carry forward to the next year.

Why is it important to have substantiation?

To claim business deductions in your tax return, you must have the records to substantiate your claims. ATO’s examples of records are:

• Receipts

• Tax invoices

• Cheque book receipts

• Credit card vouchers

• Diaries to record cash expenses

• Purchase records from suppliers

• Work sheets for calculations.

Solution…

If you are a small business owner, you don’t always have the cashflow to invest in the receipt banking apps, so an easier way and, one of the cheapest around at present, is the Xero expense app, it is an extra $5 per month on top of your Xero subscription. This way you can keep all your receipts in one place.

You can also create a bill from your email, by sending your emailed receipt directly to Xero’s unique email address, and register for e-invoicing, this way any organisation who is registered, can opted to send you an e-invoice which will automatically populate into your Xero bills.

Ahhhh, it all sounds so complicated…that’s why we are here! We have two short video walkthroughs on the Xero expense phone app and the Xero expense dashboard.

Get in touch, and we will send the links through to you!

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