Have you ever wondered whether you need to keep business records – and, if so, for how long?
Well, the Australian Taxation Office (ATO) requires businesses to keep their records relating to any tax, super or employer obligations.
A record is any business transaction, and it should include the:
- Date, amount and type of transaction
- Reason for the transaction
- Relationship between the parties if applicable
Most records must be kept for five years, but the start and end date of the five-year period can vary – it can start from the date of the transaction, end of a financial year or other event.
If the ATO asks to see your records, they must receive legible copies that are in English (or easily translated into English). If a transaction was concluded for business and personal use, then proof of the business portion must also be kept.
This is general advice only. Please consult an accountant for personal advice about your individual situation.
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