The new financial year is barely a month old, which makes August the ideal window to get your record-keeping habits sorted before the pace of business picks up again. Good records aren't just about compliance — they make tax time faster, support better decisions, and protect you if the ATO ever comes asking questions.
Why record keeping matters more this year
The ATO has flagged small business as a compliance focus area for 2026, using stronger data-matching and more frequent reviews to check that income is being reported correctly, deductions are legitimate, super is being paid, and BAS statements are accurate. None of this should be alarming if your records are in order — but it does mean loose or incomplete records carry more risk than they used to.
What you actually need to keep
By law, most business records need to be kept for five years from the date you prepare or obtain them, or five years from the date of a related transaction, whichever is later. That includes income and sales records, expense receipts and invoices, bank statements, payroll and superannuation records, GST records supporting your BAS, and a register of the assets your business owns. If you're ever reviewed, having these organised and easy to produce is far less stressful than scrambling to reconstruct them after the fact.
Keep business and personal finances separate
For sole traders in particular, one of the most common issues we see is business and personal expenses running through the same bank account. If that sounds familiar, opening a dedicated business account and running every business transaction through it — even if you're not required to by law — makes reconciliation dramatically simpler and reduces the chance of legitimate deductions being missed or overclaimed. Cloud accounting software such as Xero or MYOB can also automate much of the day-to-day recording and bank feed matching, which is worth considering if you're still working from spreadsheets or paper.
Two BAS deadlines to have on your radar this month
If your business reports GST quarterly, your April to June BAS was technically due on 28 July, but if you lodge online yourself you may be eligible for an extra two weeks, pushing the deadline to 11 August. If you lodge monthly, your July BAS is due on 21 August. Missing these dates can trigger interest charges, so it's worth confirming your lodgement date now rather than assuming.
Factor in the payday super cash flow shift
Since 1 July 2026, employers have needed to pay superannuation within seven business days of each pay run rather than quarterly. If your business has historically relied on holding super contributions for a few months before paying them, that buffer is gone. Good records make it much easier to see this cash flow change coming — a simple 12-month cash flow forecast that accounts for super leaving your account every pay cycle, rather than every quarter, will help you avoid being caught short.
Make it a habit, not a scramble
The businesses that find EOFY and BAS time genuinely stressful are almost always the ones trying to reconstruct twelve months of records in a rush. Setting aside even 20 minutes a week to file receipts, reconcile transactions and check your books against your bank statement will save hours of work later — and give you a much clearer, more current picture of how your business is actually performing.
If your record-keeping feels like it's gotten away from you, or you'd like help setting up a system that works for your business, get in touch — we can help you build a process that keeps you organised and ready for whatever the ATO or your BAS deadlines throw at you next.