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.