Resources/Blog » Record Keeping For Small Business
Record keeping is a legal requirement. By law, businesses must keep records:
◊ for five years after they are prepared, obtained or the transaction is complete, whichever occurs last
◊ in English and in a form that we can access and understand to work out the amount of tax you are liable to pay.
For example, the ATO would expect a retail business to:
◊ record each individual sales transaction through their cash register or point-of-sales system
◊ conduct a daily sales reconciliation between the 'z' total (or end-of-day report if they use an electronic system) and cash in the register, taking into account cash taken from the register for business expenses and personal use
◊ transfer daily sales total into a cash receipts book regularly
◊ perform bank reconciliations between bank statements and cash receipts book, at least monthly
◊ retain for a period of five years
• the 'z' totals or point-of-sales system end-of-day reports
• daily reconciliations
• bank records and cash receipts book
• till rolls or end-of-day reports that record details of each individual transaction (if 'z' totals have been reconciled with actual cash sales and banking, detailed till rolls may be discarded after one month)
◊ maintain a filing system to keep track of paid and unpaid accounts.