Regular record keeping and reporting helps keep your business running smoothly and helps to ensure you are able to meet your tax, superannuation and employer obligations.
To avoid common errors we see, ensure you:
- keep records of how you work out your claims if business assets or funds are also for private use
- make accurate and complete record-keeping practices, including daily reconciliations, a part of your daily business activities.
Pay close attention to the tasks that have to be done at particular times, so you're not charged penalties for being late.
Some of the following common record-keeping tasks may not apply to all businesses, as every business is different.
When to do record-keeping and reporting tasks
Daily, if applicable to your business
Record:
- your income
- your expenses
- any cash payments or drawings (for example, incidental expenses, petty cash or wages paid in cash).
Reconcile your daily sales (both cash and EFTPOS) and enter the amount into your main business accounting software system – if you do this correctly every day, it will ensure the accuracy of your records over the year. Include your:
- Z-totals
- cash register tapes (these can be disposed of after one month if you keep Z-totals)
- point-of-sale systems.
Remember, if you account for GST on a cash basis, you need to account for the GST payable on the sales you make in the reporting period in which you receive payment for them.
Bank all your cash income into your business account to ensure accurate record keeping and GST reporting.
There are 2 accounting methods to choose from for GST.
Weekly, fortnightly or monthly (depending on when you pay your employees)
Record payments to employees.
Calculate PAYG withholding and super payments.
Report your employee's salaries and wages, pay as you go (PAYG) withholding and super through an STP-enabled software solution.
Monthly
Do your bank reconciliation.
Cross-reference payments with invoice numbers.
If you're registered for GST, your BAS may be due.
If you're registered for PAYG withholding monthly or PAYG instalments monthly, your BAS may be due.
Check fuel tax credits records are accurate and complete, if lodging your BAS monthly (remember to apportion fuel use correctly).
If you're not registered for GST, review your turnover in case you need to register for GST.
Quarterly
Record details of super paid to your workers.
If you're registered for GST, your BAS may be due.
Check fuel tax credits records are accurate and complete, if lodging your BAS quarterly (remember to apportion fuel use correctly).
Complete PAYG withholding for your BAS.
Complete PAYG instalments for your BAS (if registered for GST) or your instalment activity statement if you are not registered for GST.
Your petroleum resource rent tax (PRRT) instalment statement may be due.
Yearly
Summarise income and expenses for the year and create a profit and loss statement.
Do a stocktake (if you have a significant amount or value of stock).
Summarise records of debtors and creditors.
Ensure you have records you need to work out a capital gain or loss for capital gains tax (CGT) – if applicable.
Complete records of depreciating assets.
You need to reconcile and finalise your employee's STP information through your STP-enabled solution by making a finalisation declaration by 14 July each year, or as soon as it’s ready.
If you are not reporting through STP because you have been granted a deferral or exemption from STP, you will need to issue payment summaries to your employees and lodge your annual PAYG withholding report.
If you are a private company, ensure you have records of all drawings, dividends and loans.
By the relevant due date, lodge all required obligations:
For more information, see:
- Detailed business record-keeping requirements
- Index – Record keeping for business
- End-of-year finalisation through Single Touch Payroll