Business record keeping is generally not the most exciting part of running a creative business or organisation. However, keeping good records is important. 

Sometimes, keeping records is the law. It can also help you manage your business and make better business decisions. 

If you have employees, you should also know about keeping employment records. 

Engaging a professional, such as an accountant, can help you meet your record-keeping obligations. 

About compulsory records

The law requires businesses to create and maintain certain records.

These records can show that your business is meeting its legal requirements. For example, in relation to:

• setting up or running your business
• paying taxes
• paying superannuation and employee wages.

There are different record keeping requirements depending on your business structure. For example, a business that has a company structure will be required to keep more records than an independent contractor that is a sole trader. 

It will also depend on what the business does. 

There is information below on some of the commonly required records but if you are running a business, it is your responsibility to know what records you need to keep. 

Businesses can be fined or penalised if they don’t keep compulsory records. The business and the business owners could also be exposed to legal action or financially responsible for mistakes. 

Check your record-keeping obligations with relevant agencies such as the Australian Taxation Office (ATO), Australian Securities and Investments Commission, or the Fair Work Ombudsman. 

Common compulsory records

Business registration records

Common business registration records include:

• certificate of registered business name
• insurance records and certificates
• domain name registration records
• ABN applications
• company registration records.

Taxation records

Learn more about tax records including what information must be kept and for how long.

Financial records

Common financial records include:

• records of all income and expenses
• end-of-year records, including lists of creditors (people you owe money to) or debtors (people that owe you money)
• bank records.

Employment records

Common employment records relate to:

• superannuation and contributions for employees
• wages and payments made to employees
• rosters and time sheets
• workers compensation.

Employment record keeping is regulated by workplace legislation. There may also be specific obligations on business about employment records, including when and how employees or others may access them.

Learn more about employment record keeping.

How to keep records

A record needs to show key information to show that your business:

• has satisfied a legal requirement
• meets the requirements of the relevant Government authority (for example, the ATO).

Records must be stored safely and securely. Generally, it is okay to keep them digitally. Paper records are also okay.  

Businesses need to be able to make their records available to a government regulator if they ask for them.

Time periods for keeping records

Records must also be kept for a minimum period of time as prescribed by relevant regulation. For example:

• tax records generally must be kept for 5 years (from the date of lodging your tax return) — Learn more about tax records
• employment records must be kept for 7 years — Learn more about employee records