Company record keeping

Key points:

Companies must keep certain records.
Records help in keeping track of the company's business and meeting ASIC’s lodgement requirements.
Records can be digital, but you must be able to produce hard copies.
You should regularly back up important documents.

Record keeping basics

Company officeholders must ensure that their company keeps and stores all required records.

There are laws about records in the Corporations Act 2001 as well as in other legislation. Your company’s constitution might also include rules about records.

As a company officeholder, you must understand and ensure your company meets its record keeping obligations.

If you do not understand these obligations, you should get advice from an accountant or other professional.

Financial records

In general, your company must keep up to date financial records that:

correctly track and explain transactions
correctly track and explain the company’s financial position and performance
enable accurate financial statements to be prepared and audited.

Financial records are defined in the Corporations Act. They include:

invoices
receipts
cheques
books of prime entry
working papers.

Financial records can be electronic. However, you must be able to create hard copies within a reasonable timeframe if you are asked for them. For example, you must be able to print an invoice.

Companies must keep financial records for at least 7 years.

Some companies must lodge financial reports with ASIC.

Examples of records

The types of records you must keep are determined by law. They also depend on the type and size of your company. Your company's constitution might also include rules about records.

Here are some examples of records often kept by companies.

Cash records

Cash receipts
Payments
Petty cash books

General account books

General ledger
Sub-ledgers
General journal

Bank statements and loan documents

Loan contracts
Monthly bank statements

Financial statements

Profit and loss statements
Balance sheets
Depreciation schedules
Tax returns

Contracts/deeds

Service agreements
Office equipment leases
Rental agreements
Deeds of trust, debentures
Inter-company transactions

Payments to employees

Wages, including PAYG withholding
Superannuation
Fringe benefits

Registers

Debenture holders register
Assets register
Shares register, including prospectus and option documents

Accessing financial records

Company directors have the right to access financial books and records at all reasonable times.

Members’ (shareholders’) access to financial records may depend on the company constitution.

There are processes to follow if there are disputes about access to company information.

Officeholders must provide copies of financial records to auditors on request. This is true even if someone else holds the records. For example, if an accountant holds the records, the officeholder is still responsible for access.