You need to keep your banking records. These are your cheque book stubs, bank deposit book and statements. You also need to clearly show the personal use money you take out of and put into your business account.
It can be helpful to keep separate bank accounts just for your business dealings and tax payments.
Records you need to keep
Bank records are:
- cheque book stubs showing full details for cheque you have used
- deposit books
- bank statements for your business and private accounts.
Using your bank statement helps
Having your bank statement sent on the last day of each month can help you:
- prepare your GST returns
- reconcile the details in your cashbook.
Recording money you take out and put into your business account
Clearly show any money you:
- withdraw from your business account for personal use as ‘personal drawings'
- you put into the business from your own personal funds as ‘personal funds introduced’.
You must keep all relevant paper records, for example bank statements. You need do this even if you're storing records on a computer or using electronic banking services.