At Blackwood Bookkeeping Solutions, we believe well-maintained business records are essential not only for compliance, but for clarity, control, and confidence in your financial decisions. As a business owner, it’s your responsibility to keep accurate records for tax, GST, payroll, and other regulatory purposes – and to keep them secure and accessible.
Why It Matters
Australian tax law requires businesses to retain comprehensive records that explain income, expenses, and payroll – even if those transactions are small. These records are your proof of compliance and will be critical in the event of an audit or review.
How Long Should You Keep Records?
General business records: At least 5 years from the date of your tax return lodgement.
Payroll records: 7 years from the end of the financial year.
Superannuation records: 7 years.
Digital or paper: Both are acceptable, provided they are secure, legible, in English, and readily retrievable.
Types of Records You Must Keep
Tax & GST Records
Valid sales invoices, tax invoices and receipts
Bank statements, credit card statements, cheque butts
Purchase records including proof of payment and calculations for private use
End of year documents like stocktake reports, depreciation schedules, motor vehicle records, and capital purchases
Payroll Records
(Much of this should be stored in your payroll system)
Employee details including date of birth, start date, and employment status
Pay rates, bonuses, superannuation contributions, and leave records
Timesheets, rosters, overtime, and hours worked
Termination documents, including reason, process and final payment details
Additional Records
Fuel tax credits, capital gains, BAS amendments
Documents relating to business sale or purchase
Evidence of BAS lodgements
Contracts, agreements, licences and ATO correspondence
What Role Does Your Bookkeeper Play?
At Blackwood Bookkeeping Solutions, we tailor our engagement to your needs and responsibilities:
Level 1 – Full Record Keeping & Processing
We manage and validate all source documents and ensure all claims (e.g. GST) meet ATO requirements.
Level 2 – Transaction Processing (You Maintain Records)
We process based on documents you provide. You’re responsible for ensuring compliant record keeping.
Level 3 – Review & Reconciliation
We review accounts for sense and accuracy but do not validate source documents.
Level 4 – BAS Preparation
If we’re assisting with BAS lodgement, we will clarify the level of review required (from high-level to full documentation checks). As registered BAS Agents, we must take reasonable care and may decline to lodge where documentation is insufficient.
Record Keeping Checklist
Use the checklist below to assess whether your business records are complete and compliant.
| Records | Format | Action Required |
|---|---|---|
| Business Details | Business name and structure, ABN, TFN, contact info | Ensure all details are up to date and accessible |
| Financial Statements | Profit and loss, balance sheet, cash flow | Prepare and review regularly |
| Income Records | Sales, interest, dividends | Retain invoices and supporting documents |
| Expense Records | Invoices, receipts, rent, utilities, employee reimbursements | Retain and categorise for deductions |
| Payroll Records | Employee data, TFN, contracts, hours, payslips | Maintain through compliant payroll software |
| Superannuation records, leave, termination, fringe benefits | Ensure all relevant entitlements and obligations are tracked | |
| Bank Reconciliation | Monthly bank statements, reconciliations, discrepancy notes | Perform and save monthly |
| End of Year Records | Asset purchase records, stocktakes, depreciation schedules, share transactions | Compile at financial year-end |
| GST & BAS Records | GST on sales/purchases, BAS prep and lodgements | Maintain for each BAS period |
| Other Records | Fuel tax credits, CGT, business sale/purchase, licenses | Retain documents and working papers |
| Deduction Documentation | Receipts and proof for deductible items | File and categorise clearly |
| Software & Systems | Accounting software, data backups, security protocols | Maintain access and documentation |
Clarity Through Communication
Who is responsible for what? The level of involvement you require from us will directly influence:
The extent of our record-checking obligations
How we prepare your reports and submissions
The overall service fee
These expectations are outlined clearly in our Engagement Agreement and reviewed regularly.
Final Note
Claiming GST or deductions? You’ll need:
Valid tax invoices, or
Other substantiating records (for amounts <$82.50)
Even minor oversights can lead to serious consequences. Our systems, including our Terms of Engagement, Policy Statement, and QMS, are designed to help your business stay compliant with confidence.
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