Hey everyone,
I've just started a small business as a sole trader performing work from a home workshop in a shared house and could use some advice on record keeping best practices.
I have a log of my businesses electricity usage using a monitoring device and pay the bill holder the business portion from a bank account I only conduct business from. I've been keeping bank statements marked as "business electricity" in the payment reference to my housemate.
I have seen that for sole traders we keep a months log of typical electricity use. Would it be better to
1. keep a daily log and dates of electricity use for a typical month
or
2. use a calculation based on the stated power consumption of the devices used and the amount of hours per day they are powered on?
I.E 500w machine used 8 hours a day typical, 2 days a week at 20c/kWh = $6.4 /month.
Is the bank statements with references and one of those logging methods a sufficient amount of record keeping?
What happens when the business scales up and electricity costs increase, do I just supply another journal from the month the costs changed?
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