How long should you keep financial records?

how long do i keep tax records

How long should you keep Financial Records?

The length of time that you should hang on to your financial records will vary depending on factors such as your type of business and the type of record in question.

Tax Records

General Rules:

• Individuals: 5 years from the date your tax return was lodged

• Partnerships: 5 years from the date your tax return was lodged

• Sole Traders: 5 years from the date your tax return was lodged

• Trusts: 5 years from the date your tax return was lodged

• Companies: 7 years from the date your tax return was lodged

• Super Funds: 10 years from the date your tax return was lodged

Employment Records

1. All national industrial relations system employers are required by law to make and keep employee records for a period of 7 years.

2. Prior

to 1 January 2010, employers covered by the NSW industrial relations system were only required to keep records for 6 years.

3. (Please note that for Long Service Leave purposes record keeping arrangements that applied prior to 1 January 2010 continue to apply.)

An employer must have individual employee records that include the following information:

• Whether the employee is permanent, temporary or casual

• Date on which the employee’s employment commenced

• Superannuation contributions

• Details of termination

Other examples of Business Records to be kept for seven years include:

• Accounts receivable (or debtors ledger/customers)

• Cash receipts book (or cash receipts journal, or the sales module in accounting software,)

• Cash sales receipt book

• Summary cash receipts book

• Tax invoices Issued by you as the seller.

• Accounts payable (your creditors)

• Bank reconciliation statement

Source: www.buildonbookkeeping.com.au

Category: Taxes

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