Tax basics for small business

Records you need to keep

Generally, records you need to keep include:

• Income and sales records
  Keep records of all sales and barter transactions - for example, invoices, receipt books, cash register tapes and records of cash sales.
• Expense or purchase records
  Keep records of all business expenses, including cash purchases. Records could include receipts, invoices, cheque butts, credit card vouchers and diaries to record petty cash expenses.
• Bank records
  Keep all bank records, such as bank statements and loan documents.
• Asset purchase records
  Keep details of what assets you buy and what you spend on those assets. An asset register can help you keep track of these expenses.
• Contracts and agreements
  Keep copies of contracts and franchise or other agreements.
• Year-end records
  These include lists of creditors or debtors and worksheets for depreciating assets.
• Minor deductible expenses
  For certain work, car and business travel expenses, it is not always possible to get a receipt. But you can still claim the expenses as deductions as long as you record the details of these expenses in a diary or logbook.

For more information, refer to Record keeping for small business (NAT 3029).

Sections within Keeping good records

• Legal requirement
• Keeping manual or electronic records
• Records you need to keep
• Special records you may need to keep
• Record keeping tips
• Record keeping tools