Record keeping for small business: the ATO rules
The ATO requires businesses to keep records that explain all their transactions, generally for five years. Good records make BAS and tax returns faster and protect you if the ATO asks questions.
- Registered Tax Agent 25377345
- Registered ASIC Agent 38112
- CPA qualified
- Certified Xero, MYOB & QuickBooks Advisors
- 15+ years’ experience
How long to keep records
Generally five years from when the record was prepared or obtained, or the transaction was completed, whichever is later. Some records, such as those for assets subject to capital gains tax, need to be kept longer, until five years after the asset is sold.
What to keep
- Sales and income records, including tax invoices issued
- Purchase and expense records, including tax invoices received
- Bank statements and loan records
- Payroll, PAYG withholding and super records
- GST records and BAS workpapers
- Asset purchases, depreciation and disposal records
- Stock records at year end
Digital records are fine
Records can be kept electronically, as long as they are a true and clear copy, kept for the required period and readable if the ATO asks. Bank feeds, receipt capture apps and cloud accounting software make this easier.
Individuals: work-related expenses
Employees also need records. If your total work-related expenses are $300 or less, you can claim without receipts but must show how you worked out the claim; car, meal allowance and travel allowance expenses have separate rules. Working from home under the fixed rate method (70 cents per hour for 2025–26) requires a record of actual hours for the whole year.
Let us keep them for you
Our bookkeeping service keeps your records reconciled and stored in Xero, MYOB or QuickBooks. For your annual return see our tax return service.
Frequently asked questions
How long should a business keep records?
Generally five years, under ATO rules.
Can I keep records digitally?
Yes, if they are true and clear copies kept for the required period.
Do I need receipts for small work expenses?
If your total work-related expenses are $300 or less, you can claim without receipts but still need to show how you calculated them.
What if I lose records?
Contact us. We can rebuild figures from bank statements and ATO data, and advise on what can still be claimed.
Sources
ATO: record keeping for business · ATO: records you need to keep (individuals) · ATO: working from home fixed rate method. General information only, checked 23 October 2026. Rules change, so confirm with the relevant agency or ask us about your situation.
Talk to a Registered Tax Agent
Free 15-minute call, then a written fixed-fee quote within 1 business day. Online, Australia-wide.