• Banking

    Your banking records form an essential part of your overall business records and need to be retained for five years. Your banking records can be in paper or electronic form and include:

    • deposit slips, books or records
    • cheque butts or payment records
    • bank statements
    • credit card statements
    • loan or lease agreements.

    We recommend you regularly bank all the money your business receives as this will help you to access up-to-date information on your income and expenses, reconcile your accounts and better analyse your cash flow.

    Check with your bank to see if you can register for internet or online banking and access your bank statements electronically through your bank's secure website. This may help to simplify your record keeping and bank reconciliation process as you can:

    • easily get detailed records of your business transactions
    • usually download and upload financial information from your online account to the accounting package of your choice
    • identify extra transactions in your account including bank fees or interest charges, and direct debits and credits
    • check and record any errors or omissions.

    Regular bank reconciliations may also help:

    • you be more confident that your records contain all the information you need to prepare your tax return and activity statements
    • you to better understand your cash flow
    • reduce the time it takes to prepare your activity statements or tax returns.
    Last modified: 09 Feb 2017QC 43021