You are legally required to keep records of all transactions related to your tax, superannuation, and registration affairs throughout the lifecycle of your business.
A record explains the tax and super-related transactions conducted by your business. It must contain enough information to determine the essential features or purpose of the transactions.
Minimum Information Required
• Date, amount, and description (e.g., sale, purchase, wages, rental)
• GST information for the transaction
• Purpose of the transaction
• Relationships between parties to the transactions, if relevant
Five Rules for Record-Keeping
• Comprehensive Records: Keep all records related to starting, running, changing, and selling or closing your business.
• Clear Documentation: For expenses with both business and personal use, clearly document the business portion.
• Unaltered Information: Ensure records are not changed and are protected from damage.
• Data Reconstruction: Be able to reconstruct original data if your record-keeping system changes.
• Retention Period: Keep most records for 5 years, starting from the later of when you prepared or obtained the record or completed the transactions. Some records may need to be kept longer.