Records All Small Businesses Must Have for a Smooth EOFY

The end of the financial year can be stressful if your financial statements and records are scattered. Things like missing documents, incorrect figures, and last-minute scrambling to get everything in order can lead to unnecessary tax bills, compliance risks, and missed deductions.

Good record-keeping is more than just ticking boxes for the tax man. It gives you better visibility over your business’s finances, helps with planning (especially when you’re working with your accountant on tax planning), and makes tax time a whole lot easier. 

Let’s go through the key records every business needs for a better end to the financial year, and to avoid nasty tax surprises.

1. Start by Organising Banking and Financial Records

Everything starts with clear, accurate financial records. Everything from reconciling bank transactions, tracking cash flow, or preparing tax returns, well-organised banking records make EOFY significantly easier for you and your accountant.

Business bank statements, merchant facility reports, and transaction records should be readily accessible. If you’re still manually tracking sales and expenses, now is a good time to switch to an accounting platform that syncs with your bank accounts.

What to keep:

• Bank statements for all business accounts
• Credit card and loan statements
• Payment records for business transactions
• Merchant facility reports for EFTPOS and online sales

Why do these matter? Accurate banking records ensure your financial statements match your actual transactions. This avoids discrepancies in your tax return and makes auditing less of a headache.

2. Keep the ATO Happy with GST and Tax Documents 

If your business is registered for GST, keeping proper records is essential if you want to keep the ATO on your good side. 

The ATO requires businesses to maintain detailed GST records, including invoices and receipts, to support claims made in Business Activity Statements (BAS).

Losing track of GST transactions could mean paying more tax than necessary or facing penalties for incorrect claims.

Documents you should have on file:

• Tax invoices for all sales and purchases
• GST payment records
• Credit notes and adjustment notes
• Documentation of tax deductions

Here’s a hot tip for better record-keeping – set up a digital system to store GST records in real-time. Cloud accounting software like Xero or QuickBooks can track GST transactions automatically, making EOFY reporting much easier.

3. Maintain All Employee and Payroll Records

Payroll isn’t just about paying wages. As an employer, you need to meet reporting obligations for PAYG withholding, superannuation, and Single Touch Payroll (STP) submissions. EOFY is when reporting mistakes start to surface, and fixing them last minute is no fun for anyone. Especially a busy, stressed business owner!

The key records to maintain are:

• Payroll reports showing salaries, tax withheld, and super contributions
• Employee tax file declarations and payment summaries
• PAYG withholding reports submitted to the ATO
• Superannuation contribution records

If you’re running payroll manually, it’s time to automate. Most cloud-based payroll systems handle STP reporting and ensure that all payments are properly recorded so you’re never caught off guard at the last minute. It’s 2025… time to automate!

4. Collect All Business Income and Sales Records

Every dollar that comes into your business needs to be recorded, whether it’s from product sales, service fees, or government grants.

For businesses that operate across multiple platforms, like physical stores, online sales, and service invoices, keeping all income records in one place is very important.

Common types of business income could include:

• Sales invoices and receipts
• Online transaction reports (Stripe, PayPal, Shopify, etc.)
• Records of government grants or business incentives
• Interest earned on business accounts

Pro tip – If you use multiple sales channels, integrate them with accounting software to ensure no income is left untracked.

5. Reduce Your Tax Bill with Expense and Deduction Records

Claiming deductions can significantly reduce your tax bill, but only if you have the documentation to back them up. The ATO requires proof of all business-related expenses, so keeping clear, itemised records is key to keeping them on your good side.

Expense categories many businesses track include:

• Rent and utilities
• Business travel and vehicle expenses
• Equipment and technology purchases
• Advertising and marketing costs
• Insurance premiums

Instead of hoarding paper receipts, use an expense-tracking app that lets you scan and categorise expenses as they happen. This keeps everything organised and easy to retrieve when tax time rolls around.

6. Asset and Stock Records

If your business owns assets like machinery, vehicles, or equipment, keeping detailed records is essential for depreciation claims and capital gains tax calculations. Businesses with stock need to ensure they have accurate inventory records for EOFY stocktakes.

What to document:

• Purchase records for business assets
• Asset depreciation schedules
• Maintenance and repair costs
• Stocktake reports and valuations

A smart EOFY move is to use accounting software that includes asset tracking to calculate depreciation and ensure stock valuations are accurate.

7. Proof of Payments With Contractor and Supplier Records

If your business engages contractors or suppliers, clear payment records are required for tax deductions and compliance. The ATO may request records of payments made to contractors, especially if you’re required to submit a Taxable Payments Annual Report (TPAR).

Records to maintain could include:

• Contractor invoices and payment confirmations
• Supplier agreements and contracts
• Payment records for overseas contractors
• ABN records for suppliers

To save time, store all contractor and supplier payments in a single system, rather than managing separate spreadsheets or email chains.

Let’s Do EOFY Right

EOFY is much smoother when your records are up to date. Instead of a last-minute scramble, taking a structured approach to record-keeping will save time, maximise tax deductions, and keep your business compliant.

At Rockwall Partners, we help business owners stay on top of EOFY preparation with expert accounting support. If you need help organising records, lodging tax returns, or optimising your deductions, our team is here to help.

The sooner you start, the easier EOFY will be.