Keeping good records is essential for running - and selling - a business. The paperwork should cover your own business dealings as well as records on your employees.
On this page:
Business records
Employment records
Pay slips
Business records
Under tax law companies must keep records that itemise all business transactions – income and expenditure - for five years. The Australian Taxation Office has a useful guide that outlines
basic record-keeping and explains the information you need to log.
Not only is the record-keeping vital for paying the correct tax, but it can also help a company in other ways:
- monitoring the health of the business
- making sound business decisions
- keeping track of debtors and creditors
- managing cash flow
- obtaining finance from lenders
- selling the business
- briefing an accountant.
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Employment records
By law companies must keep accurate time and wages records for seven years. The records should be in plain English and easy to read. Included in the information must be:
- the name of the employer and employee
- the company's Australian Business Number (ABN)
- the date the employee started
- the type of employment - eg full-time or part-time
- hours and rates of pay
- overtime, loadings, monetary allowances etc.
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Pay slips
Paper or electronic pay slips must be sent to each employee within 24 hours of their pay day, even when they are on leave. Information required includes:
- the name of the employer and employee
- the company's Australian Business Number
- the date of payment and pay period
- the gross and net amount of pay
- any loadings, bonuses, penalty rates etc
- the hourly pay rate and hours worked, or an annual rate
- any deductions, including superannuation and tax.
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More information