Running a business comes with a lot of moving parts. Between managing customers, suppliers, and the daily grind, keeping your paperwork in order might not feel like a top priority.

The truth is though, is that keeping good records are the foundation of a healthy, well-run business.

Whether you're self-employed, a contractor, or managing a growing company, tidy records help you stay in control, save money, and avoid stress.

Five Reasons to Keep Your Records in Shape

1. Tax time becomes a breeze
Having your income and expenses clearly recorded means you’re prepared when it’s time to file your returns. You’ll know what you can claim, how much you owe, and you’re less likely to make a mistake that could cost you.

2. You’ll understand how your business is doing
Good records show you where your money is coming from and where it’s going. That insight helps you make better choices, like when to invest, when to cut back, or when to try something new.

3. You save time and cut costs
Well-organised records mean less time sorting through paperwork and frees up your own time to focus on the business plus it allows your accountant to get straight to work.

4. It improves your chances with banks or investors
If you ever apply for a loan or want to bring in outside funding, clean and complete records help prove your business is reliable. It shows that you know what you’re doing and that your numbers can be trusted.

5. You’ll be ready if IRD checks in

From time to time, Inland Revenue may decide to audit your accounts without warning. If everything is clear and complete, it will be a smooth process. If not, it can lead to delays, extra questions, or even penalties.

What Should You Keep?

You are required to keep most business records for at least seven years. These include:

Invoices and sales records
Receipts and proof of expenses
Bank and credit card statements
PAYE and wage records if you have employees
Stock takes and asset registers

You can store them physically or digitally, as long as they’re safe, easy to access, and in English or te reo Māori (unless you have IRD’s approval to use another language).

Simple Tips to Stay Organised

Set a regular time each week to update your records
Take photos or scan your receipts into Hubdoc to keep everything in one place
Use Xero and Hubdoc to manage your finances and stay on top of your accounts
Keep business and personal finances separate

Staying on top of your records brings peace of mind and puts you in a stronger position to grow your business with confidence.