Running a Side Business in Retirement?
7 Financial Records You Should
Keep Organised

A side business can provide extra income, purpose and flexibility in retirement.

But even a small operation creates financial records that need to be managed properly. The ATO requires businesses to keep records connected with income, expenses, tax and other business obligations. Australian Taxation Office ↗

Here are seven areas worth keeping organised.

1. Income records

Keep a clear record of every source of business income.

That can include:

• customer payments
• consulting fees
• commissions
• online income
• platform payments
• affiliate income
• cash receipts

Do not rely on your memory or bank balance alone. A clear income record makes it much easier to review what the business is actually generating — and whether it remains worth running.

2. Invoices

If you invoice clients, keep copies of every invoice issued.

Your records should make it easy to see:

• who owes you money
• what has been paid
• what is overdue
• which financial year the income belongs to

Accounting software can help automate this. Xero, for example, currently supports online invoices and automated payment reminders for Australian small businesses. Xero ↗

3. Business expenses

Keep records for expenses connected with earning business income.

Depending on the business, that might include:

• software subscriptions
• professional services
• advertising
• insurance
• office supplies
• equipment
• phone and internet costs
• eligible travel or vehicle costs

Keep receipts and supporting documents rather than relying only on bank transactions. A bank statement records that money left your account. A receipt records what it was for — and that distinction matters for tax purposes.

4. Bank statements

Bank statements provide an important record of money moving in and out of the business.

A separate business account can make this much easier to review and reconcile. Mixing business and personal transactions in the same account adds complexity at tax time and makes it harder to see what the business is actually doing.

Some accounting platforms can import bank transactions automatically and help match them against your records. Xero ↗

5. GST and BAS records

If GST applies to your business, keep the records needed to prepare your Business Activity Statements.

Accounting software can help track GST and prepare BAS information, but you remain responsible for ensuring your records are correct. Xero currently includes GST and BAS tools in several Australian plans. Xero ↗

If you are unsure whether GST applies to your business or how to prepare a BAS, a registered tax agent or accountant can help clarify your obligations.

6. Asset and equipment records

If you buy equipment for the business, keep details of:

• purchase date
• cost
• receipt
• business use
• sale or disposal later

These records may be relevant to depreciation and tax calculations. Even a modest purchase — a laptop, a printer, a piece of equipment used for the business — can have tax implications that records help substantiate.

7. Tax payments and amounts set aside

Keep track of tax already paid and money you have set aside for future tax obligations.

This is particularly important when you are receiving income that does not have tax automatically withheld. Treating every dollar received as spendable is one of the most common financial mistakes made with side income. Setting money aside for tax as it comes in can make the end of the financial year considerably less stressful.

Make the system easy enough to maintain

The best bookkeeping system is one you will actually use.

That might be:

• a spreadsheet
• cloud accounting software
• a bookkeeper
• an accountant
• or a combination of these

Xero is one example of accounting software that can bring invoicing, bank reconciliation, reporting, expenses and tax-related record keeping into one system. Xero ↗

For a very small side business, you may not need every feature. The goal is simply to make your finances easier to understand — and to be able to answer three questions quickly: What did I earn? What did it cost me to earn it? What tax might I need to allow for?

If your current system cannot answer those questions easily, it may be time to improve it. You can find further practical money and retirement tools at wealthlorraine.com/resources.