Staying on top of record keeping
We get it: it’s an arduous process to manage the records, receipts, bills and payments that a business generates, but staying on top of record keeping is vital to the success of your business.
According to the Australian Securities and Investment Commission (ASIC), the records you must keep and how long you need to retain them depends on the type of designated services you provide.
At North Advisory, we understand that the process of record keeping feels like a ‘micro detail’ when you’re busy reaching for the goals that will help your business to flourish.
You want to focus on connecting with your customers and finding new areas for growth, right?
Our team of Chartered Accountants can manage all your tax and compliance matters so that you can stop stressing and enjoy building your business.
Here are some tips for ensuring your business does its best to maintain good record-keeping to streamline this process.
“Good record keeping isn’t just about compliance — it gives you clarity and control over your business.”
What is a financial record?
ASIC states that financial records can include:
- invoices
- receipts
- cheques
- books of prime entry
- working papers and other financial documents.
These records can be electronic, but they must be convertible into hard copy (for example: printed as paper copies). Even if someone else holds your records (like your accountant or registered agent), you, as a company officeholder, are still responsible for providing copies to auditors.
ASIC legislation states: “Section 286 of the Corporations Act requires financial records to be kept for at least seven years after the transactions covered by the records are complete.”
Financial records you should keep
ASIC provides us with a list of vital documents and records that every company should keep, namely:
- Financial statements
Including profit and loss statements, balance sheets, depreciation schedules and taxation returns. - Electronic copies of critical documents
Don’t forget to back up your most critical business documents on a weekly or even daily basis. - Cash records
Including cash receipts, records of bank deposits, petty cash books and cheque butts.
- Bank statements and loan documents
- Sales and debtor records
- Invoices and statements received and paid
Including correspondence, annual returns, wage records and superannuation records. - Any unpaid invoices
- Minutes of members or directors’ meetings
Details of resolutions passed by directors or members should also be minuted. - Any relevant registers
This may include a register of members, options, debenture holders, assets or any other relevant items. - Deeds
These can be deeds of trust, debentures, contracts and agreements, or any intercompany transactions.
Five tips to stay on top of record-keeping
Effective record-keeping helps ensure information about your business is structured and accessible and goes a long way in paving your path to business growth and success.
“Up-to-date records make better decisions possible and reduce stress at tax time.”
Some handy tips for record management include:
1. Establish record-keeping policies and procedures
Define the rules and processes for collating, keeping and storing important records to ensure your business consistently manages them and that each employee understands the expectations for record keeping.
2. Ensure records are easily accessible
While some business records will need to be stored under password protection or lock and key, for the most part, employees in your organisation should be able to easily access the records they require to carry out their roles and assist in ensuring they adhere to record keeping policies and procedures.
Utilise online and offline systems to order and file records in easily accessible ways.
3. Archive when appropriate
Records should be kept as long as the business needs them to adhere to compliance standards, but an effective record-keeping system will have an archiving process to keep things manageable.
Implement a record management timeline as part of your record keeping procedures to ensure files are kept for the appropriate length of time.
4. Seek training
There are software systems that can greatly improve an organisation’s record keeping and it makes sense that staff will need to be trained to use these systems to ensure they can effectively manage record keeping.
Ensure each employee involved in record keeping procedures can confidently manage the software systems you use as part of your records management.
5. Outsource when needed
Depending on the nature of your business, it may be necessary to outsource your record keeping.
At North Advisory, we can help minimise your stress by implementing efficient processes and tailoring our accounting services to meet all your needs.
Accounting services for businesses
When you engage our tax and compliance services, you will enjoy peace of mind from knowing that all your regulatory needs are met.
We continually monitor your business accounts and financial reports to find any new opportunities that may further promote a beneficial tax position.
Regardless of whether you work in industrial and manufacturing or professional services, we have the resources and the professional capacity to manage complicated processes with ease.
Work with the team at North Advisory, and you can be confident that we’ve covered everything.
If you’d like to discuss your business’s tax and compliance issues with our team, please contact us today.
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Record Keeping Is a Legal Requirement
Failing to keep proper records can lead to penalties, audits and unnecessary stress.
Consistency Prevents Backlogs
Regularly updating records avoids last-minute scrambling and improves accuracy.
Digital Systems Improve Efficiency
Cloud accounting software streamlines record keeping and provides real-time visibility.
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Frequently Asked Questions
Why is record keeping important for businesses?
Accurate record keeping is essential for meeting ATO obligations, managing cash flow, tracking performance and making informed business decisions.
What records does my business need to keep?
Businesses must keep records of income, expenses, invoices, receipts, payroll, superannuation, BAS and tax-related documents.
How long do business records need to be kept in Australia?
Most business records must be kept for at least five years, even if your business closes or changes structure.
Can I keep records digitally?
Yes. Digital record keeping is accepted by the ATO, provided records are accurate, accessible and securely stored.
How can record keeping be made easier?
Using cloud accounting software, maintaining regular bookkeeping routines and working with an accountant can significantly simplify the process.
What’s the risk if I don’t stay on top of record keeping?
When records get messy or missing, it can create stress, slow decision-making, and make tax and compliance work harder than it needs to be.
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Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
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Dee Why, Northern Beaches
NSW 2099
Australia