The Records Checklist: What Every Business Must Keep

Starting a business comes with a lot to learn. And record-keeping is one of the most important things to get right from day one. It's not just good practice. It's a legal requirement. And unlike most things in business, it's much harder to fix later than it is to set up properly from the start.

The good news is that it doesn't need to be complicated. Once you know what to keep and how to organise it, it becomes a simple habit rather than an overwhelming task.

What records must you keep?

According to Inland Revenue, every business must keep enough records to calculate income, expenses, and tax liabilities and to enable IRD to confirm your accounts if required.

That sounds broad, but in practice it breaks down into a few clear categories.

Income and sales

This includes every invoice you issue, every receipt for payments received, sales records, and any debit or credit notes. If money comes into your business, you need a record that shows where it came from and what it was for. This is the foundation of your income tax return. Without it, you're guessing.

Expenses

Every business expense needs a matching document: an invoice, a receipt, or proof of purchase. This covers everything from rent and software subscriptions to materials and travel costs. These records are what allow you to claim deductions, and without them, you may end up paying more tax than you need to.

Bank statements

Keep statements for your business bank account, credit cards, loans, and any interest-bearing accounts. These are your reconciliation backbone, they're how you verify that what you've recorded actually matches what was paid or received.

GST records (if registered)

If you're GST-registered, you need to keep all tax invoices you've issued and received, along with your GST calculations. These need to be accurate and available in case IRD wants to review them.

Payroll records (if you employ staff)

If you have employees, you're required to keep wage records, PAYE details, KiwiSaver contributions, and records of any other deductions. Getting this wrong can create problems with both IRD and your staff, so it's worth keeping these tidy from the start.

Financial and business records

This covers the bigger picture: your profit and loss statement, balance sheet, asset register, and depreciation schedules. If you're operating as a company, you'll also need to keep proper company records such as shareholder details, annual returns, and meeting minutes.

How long must you keep them?

The short answer: at least seven years. This applies to all records, including electronic ones. Even if you close your business, the obligation remains. IRD can still request records for up to seven years after the fact.

One other detail worth knowing: your records must be kept in English or Te Reo Māori, unless IRD has approved another language.

Making it manageable

The checklist above might look like a lot, but not all of it will apply to you right away. If you don't have staff, you can skip payroll. If you're not GST-registered, you don't need GST records yet. Start with what's relevant to your situation: income, expenses, and bank statements, and build from there.

The most important thing is having a system. Whether it's a folder on your computer, a shoebox of receipts you photograph each week, or a properly set up Xero file. What matters is that you can find what you need when you need it.

If you're unsure whether your records are where they need to be, now is the best time to check — not when IRD comes asking.

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This is exactly the kind of thing I help my clients get sorted from day one. If you want help setting up a record-keeping system that works for your business, get in touch — I'd love to help you get it right.