Keep the right records
Good records are the evidence behind every tax position. They support income, deductions, GST credits, payroll, superannuation, assets, loans and year-end adjustments. Without records, a business may struggle to prove what happened, why it happened, and whether an amount was genuinely connected to business activity.
What counts as a record
The ATO describes a record as information that explains the tax and super-related transactions conducted by the business. The minimum information generally includes the date, amount, description of the transaction, relevant GST information, purpose of the transaction, and relationships between parties where relevant. This is why a bank transaction alone may not always be enough. A business should also keep invoices, receipts, contracts, payroll reports, loan documents, and other evidence that explains the transaction.
Records for income and expenses
Income records may include tax invoices issued, receipts, customer statements, point-of-sale summaries and bank deposit evidence. Expense records may include supplier invoices, receipts, purchase orders, reimbursement claims, credit card statements, subscriptions, professional fees and work-related travel support. Where an expense has both private and business use, the business should keep evidence of the business portion. This helps avoid overclaiming and supports a more defensible tax return.
Records for BAS, GST, PAYG and payroll
The ATO states that information included in a BAS must be complete and accurate, and good records help businesses meet BAS requirements and claim GST or fuel tax credits they may be entitled to. BAS-related records can include GST records, PAYG withholding records and other relevant tax records depending on the business. Payroll records should support wages, tax withheld, superannuation, leave, and employee reporting obligations.
Asset, loan and capital records
Asset records are important because they support depreciation, financing, insurance, disposal proceeds and tax calculations. Businesses should retain purchase contracts, invoices, finance agreements, registration documents and disposal evidence. The ATO also explains that some records need to be kept longer than the general five-year retention period, including certain records for depreciating assets and capital gains tax assets. This is a useful reminder that record retention should be based on the nature of the transaction, not simply a generic filing habit.
How TechnoFin can help
TechnoFin can help clients build a record-keeping system that is simple enough for day-to-day use but strong enough for compliance. This may include cloud folders, consistent naming conventions, attachment of receipts to accounting transactions, month-end checklists, payroll record routines, and secure access controls. This links TechnoFin’s accounting and advisory services with its managed IT, cybersecurity and digital transformation capabilities.
Practical checklist for business owners
- Sales invoices and receipts.
- Supplier bills and receipts.
- Bank and credit card statements.
- Payroll, PAYG and superannuation records.
- Asset purchase, finance and disposal documents.
- Loan agreements and repayment schedules.
- Contracts, leases, insurance and professional fee invoices.
