Accounting is just book-keeping on all the transactions or income/expenses you incur. In investing, the point of accounting is to:

  • Understand the performance of your investments.
  • See exactly what your income and expenses are to maximise the former and minimise the latter.
  • Reduce your tax liabilities when you file your tax returns.
  • Prove your income tax return is accurate in the event of an audit by the ATO.

Personal Accounting

  • Track all expenses and get records for all of them. Stash all your physical or digital receipts in one physical or digital place.
    • Organise the stash by financial year.
  • If some income-related usage of a vehicle is involved, log the mileage.