Based in Surry Hills
Check what records you need to keep based on the size, structure and nature of your business, your situation and the stage your business is in.
Record-keeping tips
Top tips to help your business avoid record-keeping errors.
Starting your business – records
Work out what records you need to keep when you start your own business including if you bring goods you already own into the business.
Running your business – records
What records you need to keep while you run your business including those related to business activity statements (BAS), tax returns, employing workers and crypto assets.
Changing your business structure – records
What records you need to keep if you change your business structure.
Selling or closing your business – records
Work out what records you need to keep if you sell or close your business.
Gifts or loans from related overseas entities
What records you need to keep if you have received gifts or loans from related overseas entities, including family members and friends.
How self-managed super fund (SMSF) trustees can meet their responsibility to keep accurate tax and super records.
On this page
Keeping good records is more than just knowing which records to keep and for how long. It involves having a system for organising and maintaining records that makes it easier for you, and any SMSF professional you use, to:
It may also help reduce audit and administration costs for your fund.
To help keep your records organised, you may want create separate files for your fund’s more permanent records, and for records that relate to a specific financial year.
For example, in your permanent file you may want to keep:
As each SMSF is unique, with its own investment strategies to achieve its objectives, you should consult with a professional licensed adviser when setting up a record-keeping system that suits your fund.
Keeping all relevant records together will simplify the process of compiling the records you need to give to your fund’s independent auditor. If your fund regularly holds trustee meetings, you could create a separate folder for them, and sort them by date.
Watch:
You should take minutes of all investment decisions, including:
This is because if you, as one of the fund’s trustees, invest the SMSF’s money in an investment that fails, the other trustees could take action against you for failing to be diligent in your duties.
However, if your investment decision was recorded in meeting minutes signed by the other trustees, you will have a record to show that they agreed with your actions.
Under the super laws, SMSF trustees must sign their SMSF’s financial statements before finalising their annual audit. This includes an operating statement and a statement of financial position which must be signed by the required number of trustees or directors of the corporate trustee, as set out in the tables below.
| Structure of the fund | Signature requirements |
|---|---|
| Corporate trustee – single director | That director |
| Corporate trustee – multiple directors | At least 2 of the directors |
| Individual trustees | At least 2 of the trustees |
| Structure of fund – number of directors or trustees | Signature requirements |
|---|---|
| Corporate trustee – one or 2 directors | All directors |
| Corporate trustee – 3 or more directors | At least half of the directors |
| Individual trustees – 2 trustees | All trustees |
| Individual trustees – 3 or more trustees | At least half of the trustees |
The most important reason for keeping good records is that it’s a legal requirement for you to do so. You may also need to provide accurate records to us if we ask to see them.
You need to keep the following records for a minimum of 5 years:
You need to keep the following records for a minimum of 10 years:
Don’t forget you also need to keep track of income tax record-keeping requirements, such as those related to deductions, capital gains and losses.
Keep records in writing and in English. If you keep electronic records, they must be capable of verification by us and be in a form we can access and understand.
For more information see event-based reporting for SMSFs.
SMSF members may be eligible for early access to super in very limited circumstances.
If you are a trustee of an SMSF, you must:
If a fund member does not meet all the requirements of a condition of release, they may face heavy penalties for illegally accessing their super. The SMSF trustee may also face penalties for illegally releasing a member’s super.
There are many benefits to keeping good records. It can help you:
You must keep records of all transactions related to your business’s tax and superannuation affairs, including records that support the information you include in your tax returns and reports.
The records you need to keep depend on the tax and superannuation obligations of your business and the structure of your business (sole trader, partnership, company or trust).
The Australian Taxation Office (ATO) requires that:
We recommend you check the record-keeping requirements of all organisations you deal with.
Use the ATO’s record keeping evaluation tool to decide what records your business needs to keep as well as check how well your business is currently keeping records.
You can keep records electronically or in paper form. The ATO recommends that businesses use electronic record keeping if possible, as they are progressively moving towards electronic reporting for tax and super obligations. Keeping your records electronically should make some tasks easier and save you time once you have your system set up.
If you keep your records electronically, there’s no need to also keep paper copies unless a particular law or regulation requires a paper copy.
You can also store and keep paper records electronically. The ATO accepts images of business paper records saved on an electronic storage medium, provided the electronic copies are a true and clear reproduction of the original paper records and meet their record-keeping requirements. Once you have saved an image of your original paper records, you don’t have to keep the paper versions.
Whichever you choose, make sure you store your records in a secure place. Back up your records and, if possible, have a secure off-site storage location, which may include cloud storage.
The records must also be on a computer or device that:
In general, you need to keep most records for five years. Starting from when you prepared or obtained the records, or completed the transactions (or acts they relate to).
There are some situations where you will have to keep records for longer than five years, including if your business owns capital assets that are subject to capital gains tax – refer to the ATO’s Acquiring CGT assets.
The Australian Securities & Investments Commission (ASIC) requires companies to keep records for seven years.
If you’re a sole trader, you can use the ATO app’s myDeductions tool to record your:
At tax time you just upload your data to pre-fill your tax return or email it to your tax agent.
Manual bookkeeping systems use a series of books or ledger accounts. You can often get these from your local newsagent, office supply or book store.
The advantages of a manual system can include:
The ATO is moving towards all electronic records. So, now may be a good time to go electronic. Some advantages of digital record keeping include:
Your electronic options include accounting software, web-based systems and spreadsheets.
Off-the-shelf or tailored software accounting packages help you to:
Check what software your accountant or business advisor recommends. Make sure software complies with Standard Business Reporting (SBR).
A web-based or ‘cloud’ system:
However, it does have security risks.
Find out about the cloud computing software service on the ATO website.
Are you confident using a computer, but don’t have the funds for an accounting package? Consider setting up a series of spreadsheets for your accounts.
Visit the ATO website for more information on manual and electronic record keeping systems.
As your business grows, you may find you need to update or upgrade to a POS system. These are computer systems that help you process sales and can support record keeping.
Depending on the system you choose, POS systems can automatically:
Think about the features your business needs before buying a POS system.
If you employ people, you have to keep employment records. You’re legally required to keep some employment records for 7 years, such as:
While not all employee records have to be kept, it is best practice to keep other records to provide a full employment history. These include:
You must keep all records for your employee for 5 years relating to:
Alongside the importance of paying employees correctly and on time, as an employer, you must also understand your obligations to provide pay slips.
The legal requirements of pay slips include:
It’s also recommended that you:
Not providing a pay slip, or providing one without the required information, can result in a fine for your business.
If you employ staff, you may need to create rosters and timesheets to record their hours of work. It’s best practice to keep these records.
Under most awards you and your employee must agree on the hours of work and rostering in advance, especially if they’re full-time or part-time.
A roster is a timetable that shows the days and times your employees are required to work. It usually includes the employee’s name, dates and hours to be worked and any scheduled breaks. A roster needs to be displayed in an easy to access place for employees and given in advance.
Your enterprise agreement or award may also have rules about when and how a roster should be displayed, and the process than you need to follow to change it.
A timesheet is a timetable that shows the days and times that your employees actually worked. Your employees will usually complete this document. The pay slip you provide to your employees will reflect the hours your employee actually worked.
If you ask an employee to start work before their rostered start time or stay back after their rostered end time, you must pay the employee for additional time. As it is counted as hours worked.
If you require an employee to attend a meeting or compulsory training, you will need to pay for this time.
If you’re asking staff to work outside their usual hours remember to check your enterprise agreement or award, as penalty rates or overtime pay may apply.
Bella Vista New South Wales 2153,Australia.
