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Why You Absolutely, Positively, 100% Need to Keep Your Business Receipts (and How to Do It Without Losing Your Mind)

Picture this: it’s tax time. You’re sipping your third coffee of the morning, scrolling through your bank transactions, and you come across a $129 charge from Officeworks. Was that for client supplies, kids school supplies, printing family photos… or your new “ergonomic” chair that’s now just holding your laundry?

Suddenly, the ATO feels like a looming figure in the corner whispering, “Show me the receipt…”

Why Receipts Actually Matter – even for “obvious” things.

The Australian Taxation Office (ATO) doesn’t just want to believe you when you say something’s a business expense — they want proof. And by law they can request “proof of purchase”.

Every deduction you claim must be backed up with proper documentation, which usually means:

• A valid tax invoice showing who you paid, what you bought, and when. So no, bank statements are “not enough” to validate that information.

• Evidence that it was for business purposes (and no, not everything is business related no matter how much you want it to be).

If the ATO decides to do an audit, and you don’t have receipts, they can (and will) disallow those deductions faster than you can say, “but it was totally for work!”

A (Totally Made-Up but Painfully Realistic) Example

Meet Bob the Builder… of websites.

Bob runs a small business and is amazing at building beautiful online stores — but terrible at admin. He buys gear, software, stationery, and takes clients out for meetings, but doesn’t bother saving his receipts. “It’s fine,” he says.

Until one day, a letter arrives.
ATO Audit.
(Insert dramatic music.)

Bob spends two weeks trying to piece together his records. But half his receipts are gone. The ATO auditor, calm but firm, disallows all the expenses he can’t substantiate.

• His deductions drop.
• His taxable income jumps.
• He owes extra income tax and GST.
• Plus interest and penalties for incorrect claims and now overdue payments.

Suddenly, Bob’s “quick tax return” turns into a financial horror movie with bonus stress, lost weekends, and a very sad-looking bank account.

How to Avoid Becoming “Audit Bob”

The good news? You can totally avoid this drama — and it’s surprisingly easy.

Say goodbye to the shoebox of crumpled receipts and let the tech do the heavy lifting for you:

• Dext or Hubdoc – snap a pic or forward an email invoice, and it’s automatically read, stored, and sent to your accounting software. Saved as a pdf and filed neatly away in the online storage system.

• Xero, MYOB, or QuickBooks Online – attach the image directly to the transaction so everything’s matched and backed up.

If the ATO ever audits you, you want to be able to provide the information easily and quickly, without the need to hyperventilate into a paper bag.

The Hidden Perks of Doing It Right

• Peace of mind – You’ll sleep soundly knowing your records are audit-proof.
• Save time (and sanity) – No more last-minute scrambles for tax time.
• Protect your cash flow – No surprise bills for disallowed expenses.
• Win your accountant’s heart – Trust us, organised clients are our favourite species.

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Our Pro Tip (Because We’re Fun and Smart)

Make “Snap & Save” your new ritual. Buy something? Snap it. Upload it. Move on with your day.
Even better — set up Dext or Hubdoc to automatically grab invoices from your inbox.
You’ll barely lift a finger, and you’ll look like an organisational genius.

Keeping receipts isn’t about being paranoid, it’s about being prepared.

Think of it like sunscreen for your business: you might not need it every day, but when the audit sun shines, you’ll be grateful you applied some protection.

So go forth, snap those receipts, and let tech do the heavy lifting.
Because receipts don’t have to be scary — but losing them definitely can be.

Need Help Getting Set Up?

At Healthy Business Finances, we make bookkeeping (and software setup) simple, stress-free, and dare we say… fun!
Book in for a software training session — we will help you set up Dext, Hubdoc, or your accounting system (and explain how to use it properly) so you can stop chasing paperwork and start running your business.