What Records Should I Keep for BAS Compliance?
- johnry8
- Sep 2
- 2 min read
Every number you report on your BAS must be backed by evidence. Good record-keeping helps you lodge your BAS with confidence, stay on the right side of the ATO and make informed decisions about your business.
When your records are in order you can:
Avoid penalties or audits
Claim the correct amount of GST credits
Save time during each reporting period
Understand your cash flow and plan for growth
Many small business owners assume that bank statements or handwritten notes are enough. But the ATO requires more than that and being prepared can make a big difference if the ATO does audit you.
The Records You Need for BAS
Here’s a quick guide to the types of records you should keep. Make sure they are clear, complete, and stored in a way that is easy to access.
Sales and Income
Tax invoices you issue to customers
Records of all payments received including EFTPOS, bank transfers, or cash
Details of any refunds or discounts you provide
Expenses and Purchases
Tax invoices and receipts from your suppliers
Proof of payment such as bank statements or receipts
Notes for any business purchases made with personal funds
Bank and Financial Information
Business bank account statements
Loan agreements and repayment records
Credit card statements used for business purposes
Employee and Payroll Records
If you employ staff, keep the following:
Timesheets and wage records
Payslips and payroll summaries
Superannuation contribution details
PAYG withholding reports
Single Touch Payroll submissions
Helpful Habits and Best Practices
Go digital whenever possible. Scan receipts or save emails so nothing gets lost.
Use accounting software. Platforms like Xero or QuickBooks make record-keeping much easier and more accurate.
Separate business from personal. Keep separate bank accounts and avoid mixing expenses.
Schedule a regular check-in. Set a reminder each month to organise your records and reconcile your accounts.
Know how long to keep them. The ATO expects you to keep your records for at least five years. If you use the online accounting packages they make it easier to store them.
Mistakes to Watch Out For
Throwing away small receipts without recording them
Not checking if invoices are valid for GST claims
Forgetting to record cash transactions
Relying only on memory during tax time
Even small mistakes can cause trouble later. With good habits now, your future self will thank you.
Call us to help you prepare and keep compliant with your BAS lodgements BAS?