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
Required taxation records include:
- end of year financial statements
- goods and services records (if you have registered for GST)
- estimates, determinations or calculation you make for your business's tax and super affairs, including how the estimates, determinations or calculations were made
- fuel tax credit (if you are claiming them).
Keep learning:
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)
- employment records must be kept for 7 years.
Tools to help with keeping tax and super records
The ATO has lots of information about record keeping that can help you.
- Check if you are keeping sufficient records with their free record keeping evaluation tool.
- Read their 5 rules for record keeping for a summary of the types and forms of records required.
- Use the myDeductions app to upload business income, expenses and vehicle trips so you can have them all ready at tax time.
More in this section:
Setting up as an independent contractor
There are lots of independent contractors in the creative industries. When you work as an independent contractor, you have your own business. This page has information to help you work out if it’s the right business structure for you and some basics on setting up.
Setting up as a company
There are lots of things to consider when deciding whether a company is the right structure for your creative business. Setting up as a company can offer benefits, but it is not straightforward and can be costly.
Setting up or joining a co-operative
A co-operative is a business structure that exists to benefit its members. It can be a useful business structure to support creative professionals working in creative industries.
Registering your business
Most creative businesses need to be registered for different things so they can operate.
Business tax
Having some knowledge of how a business works with the tax system is important for any creative business – even if tax is usually something you’re not very interested in.
Business insurance
Business insurance can protect the business and the owner if things go wrong. Some insurances are required by law. Others can be a good idea.
Employee records
Businesses and organisations must keep employee records, including about working hours, pay, leave and super.
