Clear Tax Accountants Reminds Sole Traders of Record-Keeping Rules

MELBOURNE, Australia - Sept. 26, 2025 - PRLog -- Tax time often reminds sole traders about the importance of keeping good records. For many, though, receipts go missing, bank statements don't add up, and valuable deductions are overlooked. Clear Tax Accountants is urging sole traders to get ahead of the issue by improving their record-keeping habits now.

Why It Matters

Sole traders are responsible for reporting all business income and expenses in their personal tax return. Without proper records, it can be difficult to prove claims, and the risk of paying more tax than necessary increases.

"Good records are not just about meeting ATO rules. They give you confidence in your numbers and can make a big difference to your bottom line," says Yuvraj Verma, Director and Co-Founder of Clear Tax Accountants.

What the ATO Expects

Sole traders are required to keep:

• Income records such as invoices, receipts, and bank statements.
• Expense records, including receipts for supplies, tools, home office costs, and vehicle use.
• GST and BAS documents if turnover requires registration.
• Employee or contractor records for wages, super, and PAYG withholding.

Most records must be kept for at least five years from the time the tax return is lodged. For assets and capital gains, records may need to be held longer.

Digital or Paper?

The ATO accepts both paper and electronic records, provided they are clear, accurate, and easy to access. Many sole traders are now turning to digital tools or accounting software to simplify the process and avoid losing key documents.

Support for Sole Traders

Record-keeping can be overwhelming, especially for business owners focused on day-to-day operations. https://cleartax.com.au works with sole traders to create simple systems that save time and reduce errors.

"Having a professional review your setup can help you avoid missing deductions and prevent problems if the ATO asks questions later," adds Yuvraj Verma.

Moving Forward

For sole traders, better records mean smoother tax returns, fewer headaches, and more money kept in their pockets. Clear Tax Accountants encourages sole traders to review their systems now rather than waiting until tax season.