This is Information Sheet 76 (INFO 76). It provides guidance on what officeholders need to consider when keeping written financial records of their transactions.
All companies must keep some form of written financial records that:
This page gives some examples of records that your company should keep.
Financial records can include:
These records can be electronic, but they must be convertible into hard copy (for example: printed as paper copies).
Even if your records are held by someone else (like your accountant or registered agent), you, as a company officeholder, are still responsible for providing copies to auditors or anyone entitled to inspect your records.
Section 286 of the Corporations Act requires financial records to be kept for at least seven years after the transactions covered by the records are complete.
Below are some examples of records and documents that your company should have:
This includes things like profit and loss statements, balance sheets, depreciation schedules and taxation returns.
We'd recommend backing up your most critical business documents on a weekly or even daily basis.
This includes cash receipts, records of bank deposits, petty cash books, and cheque butts.
This can include correspondence, annual returns, wage records, and superannuation records.
Any resolutions passed by directors or members should also be minuted.
This can include a register of members, options, debenture holders, assets or any other relevant items.
This can be deeds of trust, debentures, contracts and agreements, or any inter-company transactions.
Companies should also consider preparing monthly statements to track financial performance and identify any risks. Some examples include:
This provides an overview of the company's revenue and expenses, and the resulting profit/loss.
This provides an overview of the company's equity and also any debts it owes.
This summarises any incoming and outgoing cash.
If you have any doubts about the type of records you should keep, we recommend getting advice from an accountant or business professional.
Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. We encourage you to seek your own professional advice to find out how the applicable laws apply to you, as it is your responsibility to determine your obligations.
You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases, your particular circumstances must be taken into account when determining how the law applies to you.
Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.
This information sheet was issued in January 2012.
