The end of financial year is a great time to start getting your legal requirements in check. Before you lodge your tax return, be sure to check whether or not your company is doing the best it can to meet the following legal requirements and recommendations:
- Retention schedules
Many companies store their records and archives longer than they need to. As a company, you are required to comply with the Corporations Act 2001. Financial records for companies must therefore be kept for a minimum of 7 years.
- Written records
Complying with the Corporations Act 2001, also requires businesses to keep written financial records that; explain its transactions and financial position and performance, and enable true and fair financial statements to be prepared and audited. Tax time is a great time of year to check that all of your organisation’s records are properly written.
- Record keeping practices
At tax time is when many companies begin sorting through their archives and files. In Australia, employers have to keep their time and wages records for seven years. They must also be readily accessible to a Fair Work Inspector, legible and written in English.Keeping adequate records is not something that you can do once a year when tax time rolls around. Instead, workflow process, proper sentencing and indexing practices should be adopted and put in place for the duration of a record’s life. Doing this ensures that no document or record is prematurely destroyed or archived for longer than needed. If records aren’t kept or are incorrect, Fair Trading can impose fines.
- Security of digital data
If your company’s data is kept on a hard drive or USB device, it is susceptible to corruption and theft. This digital data needs additional security measures to ensure the records and sensitive information that is stored on them is protected from computer viruses and unauthorised access.
- Policy and procedures
Both policy and procedure outlines how you will manage the day to day operation of your business. These include:
- work place health and safety plans
- dress standards
- sexual harassment policies
- operation manualsIt’s good practice to provide your staff with a copy of your policies and procedures when they start work with you. You can include it as a part of their employment contract.
For the best measure of security against risks and challenges this end of financial year, call in the experts at Grace. Grace’s Information Management division are dedicated to providing safe and secure, tailored record keeping services to ensure your organisation meet legal requirements this tax time.