All business or rental property documents that are relevant is to be kept as per the requirement of Inland Revenue. This is to reduce the stress when auditing, as having more documentation to substantiate income and expense makes the process easier.
The documentations that should be kept include:
- Bank statements, cheque and deposit books
- Tax invoices & receipts for costs paid
- Invoices sent copies of invoices or invoice books if you use to invoice clients
- Wage & payroll data either electronic or manual
- Vehicle log books
- Copies of IRD returns prepared and filed
It is also recommended that it is best to keep personal bank account records for up to 7 years.
