Going out on my own with a start date of April 15th. Just getting all my bookwork prepared in advance.
My small cleaning business will be just myself working as a sole trader, not registered for GST as I will be earning well below 75000.
I will be sending anywhere from 10 - 30(generous number here) invoices every week. Assuming the number is 20 invoices per week - this equates to more than 1000invoices every year. Thinking ahead here, if I need to keep records for 5 years, does that mean it's required of me to hold on to 5000+ invoices for tax purposes?
I had planned to make a simple spreadsheet for expenses and income, and would have a business bank account to backup the income received. As well as receipts to backup the expenses. *looks around* I live in a tiny 2 bedroom and I'm wondering how I'm suppose to store more than 5000 invoices :D
Will a simple spreadsheet suffice for taxation purposes? I have spoken to an accountant (off the books - a friends advice - mates rates of a freebie consult) and he informs me that the taxation office is only concerned with me declaring income - which I will be doing. He said a simple spreadsheet like I describe is enough. However, everything I've read online says I MUST KEEP EVERY INVOICE. so I'm a little confused and seek clarification. My jobs are really low cost and it seems ridiculous to have to keep every single invoice for such small amounts.
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