Records Management

Record keeping isn't just good business practice, it's a legal requirement. You are required by the Australian Taxation Office to keep business records for a minimum of five years, in plain English and in a way the tax office can access if they need it.
 
A well organised filing cabinet is the best way to keep all your records filed. The recommended way to file is alphabetically as it's logical and easily understood, but you can choose whatever method works for you.

The records you keep should include any transaction that has a financial element such as:

• copies of invoices and receipts you provide for goods sold or services rendered
• invoices for goods or services you purchase or bills you pay such as rent, rates, insurance, licence fees etc
• payments to employees and to other organisations on behalf of employees e.g. super funds, PAYG tax
• tax return information
• bank account and credit card statements
• end of year stocktake records, assets register etc
• anything else with a monetary value to the business

Business record keeping

In addition to your ATO financial records requirements other government departments require you to keep records relating to your business and employees. 

When setting up your record keeping system you should also file records such as: 

• contracts, insurance agreements and other legal documents
• your lease if you're renting 
• licences and permits
• employee records including time sheets, copies of pay slips etc
• safety records e.g. risk assessment for occupational health and safety 
• any other records which are 'business activity' specific and required by law for the operation of your business e.g. for a café your food safety plan

Tip: Write down the method you use for filing so if someone has to do it for you they know how to. As your business grows, this is a job you could give someone else to do.

	Checklist Business records and how long to keep them (PDF 85Kb)
	A checklist of business records and how long to keep them, including financial and employment records.