Record keeping – what the ATO actually expects

Once your business is up and running, record keeping becomes part of your day-to-day tasks.

Every invoice you send, every expense you pay — it all needs to be tracked. Because at some point, you’ll need to report it to the ATO.

What record keeping actually means

Record keeping is simply keeping clear and accurate records of your business activity. This includes:

• invoices
• receipts for expenses
• bank statements
• payroll and super (if you have employees)
• contracts or agreements

If it affects your income or tax — it should be recorded.

How long you need to keep records

You are required to keep records for at least 5 years.

What your records need to show

Your records should clearly explain:

• how much income you earned
• what expenses you’re claiming
• how GST was calculated (if applicable)
• why something is deductible

It is not just about numbers — it’s more about being able to explain them.

The simplest way to stay on track

Start with:

• a separate business bank account
• one accounting system
• a weekly routine to keep things updated

Once your records are in place, the next question becomes: “What can I actually claim?” — which is covered in our article on deductions.