What bookkeeping records should I keep if I’m new to business?

Getting oriented: why bookkeeping records matter when you’re starting out

If you’re new to business, it’s tempting to think bookkeeping is just about taxes at the end of the year. In reality, bookkeeping records are the day-to-day proof of what happened in your business: what you earned, what you spent, what you own, what you owe, and why. Good records help you answer practical questions like: “Can I afford to buy new equipment?” “Which service is actually profitable?” “Do I have enough cash to pay suppliers next month?” They also protect you if someone ever questions your figures—whether that’s a lender, a partner, an investor, or a tax authority.

Bookkeeping records are not only for accountants. They’re the trail that supports every number on your reports and returns. When you keep them consistently from the beginning, you avoid panic later: missing receipts, unclear transfers, and guesswork about what a payment was for. The goal is simple: capture every business transaction, store the evidence, and be able to retrieve it quickly.

Start with a simple rule: separate business and personal

Before diving into specific records, there’s one habit that makes everything easier: keep business finances separate from personal finances. If you haven’t already, open a dedicated business bank account and, if appropriate, a business credit card. When you run business purchases through personal accounts—or personal purchases through business accounts—your records become messy. You’ll spend time untangling transactions, risk misclassifying expenses, and complicate tax reporting.

Separation doesn’t just mean separate accounts. It also means clear documentation for anything that moves between you and the business: owner contributions, owner draws, reimbursements, and loan payments. Those are legitimate transactions, but they need to be recorded accurately and supported with notes and evidence.

The core bookkeeping records every new business should keep

Most record-keeping falls into a few essential categories. You don’t need an advanced system to start, but you do need a consistent system. Below are the foundational records you should keep from day one, with practical details on what they are and why they matter.

1) Sales records: proof of what you earned

Your sales records document your business income. They show how much you sold, to whom (when relevant), when you delivered the product or service, and when you got paid. Even if you’re a one-person service business, income records are the backbone of your bookkeeping.

Common sales records include:

Invoices: If you bill customers, keep a copy of every invoice you issue. Your invoice should include an invoice number, date, customer name (or identifier), description of goods/services, quantity (if applicable), rate/price, taxes (if applicable), total amount, and payment terms.

Sales receipts: If you sell directly and provide receipts, keep digital or paper copies. Point-of-sale systems often store these automatically.

Contracts, proposals, and statements of work: These support the “why” behind an invoice and can clarify what was agreed, what deliverables were included, and when payment is due.

Payment records: Keep evidence of payments received—card payments, bank transfers, cash logs, payment processor reports, and remittance advices. For online payments, your payment platform typically provides transaction histories and payout summaries. Keep both the gross sales and the fees taken out so you can record revenue and expenses correctly.

Sales summaries: Monthly reports from your invoicing tool, POS system, or online store can help you reconcile totals and spot trends. Summaries don’t replace invoices; they help you audit your own records.

A key tip: decide whether your business will track income when you invoice (accrual style) or when you get paid (cash style), based on what’s appropriate for your situation and requirements. Either way, keep the same underlying records: invoices and proof of payment.

2) Expense records: documentation for what you spent

Expenses are more than just receipts in a shoebox. You need documentation that clearly supports what was purchased, when, how much, and that it was for business purposes. Capturing expenses consistently helps you control spending, set prices, and claim allowable deductions.

Common expense records include:

Receipts and bills: Keep itemized receipts whenever possible, not just card slips. Itemized receipts show what was bought and may be required to substantiate the business nature of the expense. For online purchases, keep the order confirmation and the invoice/receipt email.

Supplier invoices: If vendors bill you, keep copies of their invoices. These are especially important if you buy inventory, materials, or outsourced services.

Proof of payment: Keep bank statements, card statements, and payment confirmations that show the amount paid and the date. Ideally, your receipt and bank transaction match; if not, add a note explaining why (for example, partial payments, refunds, or fees).

Expense reports: If you or team members incur costs and get reimbursed, keep an expense report that includes the date, purpose, category, amounts, and attached receipts.

Travel and mileage logs: If you travel for business, keep itineraries, booking confirmations, receipts, and a clear record of the business purpose. For vehicle use, maintain a mileage log that records date, start/end mileage, destination, purpose, and distance.

Subscriptions and recurring charges: Keep subscription invoices (software, memberships, services) and track renewals. Recurring small charges are easy to forget and can add up.

Home office records: If you work from home and may claim allowable costs, keep records supporting the calculation: rent or mortgage interest statements (where relevant), utility bills, internet bills, and the method you used to allocate business use.

Practical habit: whenever you incur an expense, capture it immediately. Take a photo, save the PDF, and attach it to the transaction in your bookkeeping system. Waiting until month-end is how receipts go missing.

3) Bank and cash records: the backbone of reconciliation

Bank records are what allow you to reconcile your books—matching what your bookkeeping says happened with what actually happened in your bank and payment accounts. Even if you track everything perfectly, bank reconciliation is how you catch errors, duplicates, missing transactions, and timing issues.

Key records to keep:

Bank statements: Keep every monthly statement for business bank accounts. Download them regularly and store them in a dedicated folder structure.

Credit card statements: Same as bank statements. If you use a card for business purchases, the statement is crucial for tracking and categorizing.

Payment processor statements: If you use platforms for card payments or online store payouts, keep monthly summaries and transaction-level exports. These help you account for processing fees and chargebacks.

Cash receipts and cash payout logs: If your business handles cash, maintain a cash log. Record cash sales, cash expenses, cash deposits, and any withdrawals. Cash is often scrutinized because it’s easier to misplace or misreport, so clear logging matters.

Petty cash records: If you maintain petty cash, keep a petty cash ledger and supporting receipts. Reconcile it periodically so the cash on hand matches the ledger balance.

4) Accounts receivable records: who owes you money

If you invoice customers and allow time to pay, you need accounts receivable records. These help you track unpaid invoices, follow up professionally, and forecast cash flow.

Keep:

Aged receivables report: A list of invoices grouped by how overdue they are (current, 1–30 days, 31–60 days, etc.). This tells you where your collection efforts should focus.

Customer payment history: Notes about payment terms, discounts, disputes, and partial payments can prevent confusion later.

Credit notes and refunds: If you issue credits or refunds, keep the records and link them to the original invoice. This ensures revenue isn’t overstated.

New-business tip: define your payment terms early, include them on invoices, and keep a consistent follow-up routine. Your records should support that routine.

5) Accounts payable records: what you owe and when

Accounts payable records track bills you have received but haven’t paid yet. This helps you avoid late fees, maintain good supplier relationships, and plan cash needs.

Keep:

Supplier invoices and statements: These show what you owe. If suppliers provide monthly statements, they’re useful for confirming outstanding balances.

Due dates and payment terms: Record due dates and terms in your bookkeeping system or a simple tracker. Missing due dates can create unnecessary stress.

Proof of payment and remittance advice: When you pay, keep confirmation and, if applicable, a remittance note that shows which invoices were covered.

6) Payroll and contractor records: paying people properly

If you hire employees or engage contractors, your record requirements expand quickly. Even for a small business, payroll records can become complex, and mistakes can be costly. The key is to keep clear documentation of what was paid, why, and under what agreement.

For employees, keep:

Employment agreements and onboarding documents: Contracts, offer letters, role descriptions, and any required forms.

Timesheets and attendance records: Especially important for hourly workers.

Payroll reports: Pay runs, payslips, payroll summaries, and records of deductions and employer contributions.

Benefits and pension records: Enrollment forms, contribution records, and provider statements, if applicable.

For contractors and freelancers, keep:

Service agreements: Scope, rates, deliverables, and payment terms.

Invoices from contractors: Their invoices are your expense evidence.

Payment confirmations: Proof of payment, plus any notes on milestones or retainers.

Even if you outsource payroll to a provider, you still need to store the reports and underlying agreements. Outsourcing doesn’t remove your responsibility to keep records.

7) Tax records: documentation that supports your filings

Tax record-keeping is often the reason people start bookkeeping, but it should be the outcome of good day-to-day records, not the only reason. Your tax records include the evidence for income and expenses, plus any forms and calculations required for returns.

Keep:

Tax returns and working papers: Keep copies of all returns filed and the calculations that supported them. If you use an accountant, ask for a copy of the final accounts and any schedules you might need later.

Sales tax/VAT records (if applicable): Keep transaction-level reports showing taxable sales, exempt sales, and input tax on purchases, along with the returns you filed and proof of payment/refund.

Tax payment confirmations: Bank confirmations showing dates and amounts of tax payments.

Correspondence: Keep any letters or messages from tax authorities and your responses. Store them in a dedicated folder so they’re easy to find.

Supporting documents for special claims: If you claim specific reliefs or deductions that require extra documentation, keep the eligibility evidence and calculation method alongside the return.

8) Asset records: what you own, when you bought it, and how it’s used

Assets are purchases that provide value over time—equipment, computers, vehicles, machinery, furniture, or certain software and licenses. Asset records matter because they affect both financial reporting and, in many cases, tax calculations.

Keep:

Purchase invoices and receipts: Show the cost, date, supplier, and item details.

Warranty documents and serial numbers: Useful for insurance, maintenance, and resale.

Depreciation schedule or fixed asset register: A simple list of assets, purchase dates, costs, and how you allocate their cost over time (if relevant to your reporting method).

Disposal records: If you sell, trade in, or discard an asset, keep the sale invoice, trade-in documentation, or disposal note. This supports removal from the asset register and any gain/loss calculations.

Tip: create a fixed asset folder and store everything related to each major asset in a subfolder named with the purchase date and item name. It makes audits and insurance claims much easier.

9) Inventory records: tracking goods you buy or make to sell

If your business sells products, inventory records can become a major part of bookkeeping. You need to know what you have on hand, what it cost, and what was sold. Inventory records help prevent stockouts, theft, over-ordering, and inaccurate profit calculations.

Keep:

Purchase orders and supplier invoices: Show what you bought and the cost.

Goods received notes: Confirmation that inventory arrived, including quantities received and any discrepancies or damages.

Stock counts and adjustments: Periodic stocktake results, records of shrinkage, write-offs, and adjustments, with reasons.

Inventory valuation method documentation: If you use a method like FIFO or weighted average, keep notes on the approach for consistency.

Bill of materials (for manufacturing/assembly): If you make products, keep records of components used, labor, and overhead allocation methods so you can track true product costs.

10) Loan and financing records: clarity about what you borrowed

Many new businesses use financing—bank loans, credit lines, equipment financing, or loans from founders. Financing records matter because payments often include both principal and interest, and because lenders may request updated statements.

Keep:

Loan agreements: The contract showing the amount borrowed, term, interest rate, repayment schedule, and fees.

Amortization schedules: A breakdown of each payment into principal and interest. Lenders often provide this, or it can be generated from the loan terms.

Statements and payment confirmations: Evidence of each repayment, plus any fees charged.

Security documents: If the loan is secured (e.g., against an asset), keep the security documentation.

11) Owner and equity records: money in, money out, and why

For sole proprietors and many small businesses, owner transactions can become the biggest source of confusion. These include money you put into the business, money you take out, and personal expenses paid by the business (or business expenses paid personally).

Keep:

Owner contribution records: Notes and bank evidence when you inject funds into the business. Label transfers clearly.

Owner draw or dividend records: Documentation of withdrawals, and if applicable, formal dividend paperwork.

Reimbursement records: If you pay a business expense personally and reimburse yourself, keep the receipt and a record of the reimbursement payment.

Shareholder or partnership agreements (if applicable): These define ownership, profit sharing, decision-making, and what happens if someone leaves. Even if it’s simple, having it in writing reduces disputes.

12) Legal and compliance records: the “business identity” file

Even if you’re small, you should keep a set of records that establish your business and support compliance. These aren’t traditional bookkeeping documents, but they’re closely linked because they affect taxes, banking, and reporting.

Keep:

Business registration documents: Formation paperwork, certificates, and registration numbers.

Licenses and permits: Any documents required to operate legally in your industry or location.

Insurance policies and schedules: Liability, professional indemnity, property, vehicle, cyber, or any other coverage relevant to your business. Keep policy documents and renewal confirmations.

Client and supplier contracts: Signed agreements, including updated versions and amendments.

Data protection and privacy documents (if applicable): Policies, consent records, and contracts with service providers handling personal data.

How long should you keep bookkeeping records?

Record retention rules depend on your country, business structure, and the type of record. In general, you should keep records for multiple years after the end of the relevant accounting period, and sometimes longer for assets, loans, and legal agreements. Even if you’re not sure of the exact retention period that applies to you, it’s wise to store records in a way that makes long-term retention practical: digital files, clear folder structures, and reliable backups.

A practical approach for new businesses is to keep records longer than you think you’ll need them, especially digital copies, which are relatively easy to store. If you ever switch accountants, apply for funding, sell the business, or face a dispute, older records can be invaluable.

Paper vs digital: what to keep and in what format

Many new businesses start with paper receipts and gradually move to digital systems. Digital record-keeping is usually easier to organize, search, and back up. But whichever format you choose, consistency matters more than perfection.

Best practices for digital record-keeping include:

Save original files when possible: If you receive a PDF invoice, save the PDF rather than a screenshot. If you have an email receipt, save it as a PDF or store it in a dedicated email label/folder.

Use a naming convention: For example: YYYY-MM-DD Vendor Amount Category. Clear names make searching easier.

Store records in structured folders: A simple year > month > category approach can work well, or year > supplier, depending on your business.

Back up regularly: Use at least one off-device backup such as cloud storage, and consider a second backup for extra safety.

Link documents to transactions: Many bookkeeping systems let you attach receipts directly to transactions. This is one of the most powerful habits you can build.

If you keep paper records, store them in a way that protects them from damage and makes retrieval possible. Even if you keep paper, consider scanning important items like major asset purchases, contracts, and long-term agreements.

A simple folder structure you can start using today

You don’t need a complicated filing system. Here’s a straightforward structure that works for many new businesses:

Business Records

01 Admin & Legal (registration, licenses, insurance, contracts)

02 Banking (bank statements, credit card statements, loan statements)

03 Sales (invoices, receipts, payment confirmations, sales reports)

04 Expenses (receipts, supplier invoices, subscriptions, travel)

05 Payroll & Contractors (payroll reports, payslips, contractor invoices)

06 Tax (returns, filings, correspondence, payment confirmations)

07 Assets (purchase documents, warranties, depreciation schedules)

08 Inventory (POs, counts, valuation notes)

Within each folder, create subfolders by year and month if that matches how you work. The goal is to make it easy to drop documents into the right place without thinking too hard.

Common bookkeeping scenarios and what records you should keep

Sometimes it’s easier to understand record-keeping through everyday situations. Here are common scenarios new business owners encounter and the records that support them.

Scenario: You buy a laptop for the business

Keep the purchase invoice/receipt showing the laptop details, the proof of payment from your bank or card, the warranty documentation, and the serial number. If you use it partly for personal use, keep a note about how you determined the business-use portion.

Scenario: A customer pays via an online platform that deducts fees

Keep the customer invoice (or order record), the payment platform transaction record, the payout summary showing fees, and the bank statement showing the net deposit. This ensures you record revenue correctly and separately recognize the fees as an expense.

Scenario: You travel to meet a client

Keep travel booking confirmations, receipts for transport and accommodation, and a note of the business purpose (who you met and why). If you use your own car, keep a mileage log for the trip rather than relying on memory months later.

Scenario: You refund a customer

Keep the original invoice/receipt, the refund confirmation, and any communication explaining the reason. If you issue a credit note, keep it and link it to the original sale.

Scenario: You pay for something personally and want the business to cover it

Keep the receipt and the proof of your personal payment. Then keep the business reimbursement transaction record, ideally with a short note. This creates a clean trail and prevents the expense from being missed or misclassified.

Scenario: You purchase inventory and later write off damaged goods

Keep the supplier invoice and receiving records for the inventory purchase. When goods are written off, keep a stock adjustment record with quantities, dates, and the reason for the write-off (damage, expiry, theft), plus any supporting evidence like photos or incident notes if appropriate.

Bookkeeping categories to track from the beginning

When you record transactions, you typically categorize them so you can understand where money is coming from and going to. The exact categories vary by business, but new businesses often benefit from a basic chart of categories that can grow over time.

Common income categories include:

Sales of products

Service income

Consulting or project fees

Other income (refunds, interest, etc.)

Common expense categories include:

Cost of goods sold (inventory, materials, shipping related to sales)

Marketing and advertising

Software and subscriptions

Office supplies

Travel and meals (business related)

Professional fees (accounting, legal, consulting)

Rent and utilities

Insurance

Telephone and internet

Bank charges and payment processing fees

Repairs and maintenance

Training and education

Keeping consistent categories helps you spot patterns and makes year-end reporting smoother. If you change categories constantly, comparisons become less useful.

Monthly routine: how to stay on top of records without getting overwhelmed

Most bookkeeping problems come from procrastination. A simple monthly routine prevents pileups and reduces stress. Here’s a manageable approach for new business owners:

Weekly (10–20 minutes): Capture receipts, file invoices, and review bank transactions for anything unusual.

Monthly (1–2 hours): Reconcile bank and card statements, make sure every transaction has a category and supporting document, review unpaid invoices and bills, and generate a basic profit and loss summary.

Quarterly (optional but helpful): Review your pricing and expenses, check tax set-asides, assess cash flow, and do an inventory check if you sell products.

If you keep up with reconciliation, most of the “hard” work becomes routine. If you don’t reconcile, small errors accumulate and become hard to trace later.

Red flags that your records aren’t complete

If you’re unsure whether you’re keeping enough records, watch for these warning signs:

You have bank transactions you can’t explain.

You’re missing receipts for regular spending categories.

Your invoice list doesn’t match your deposits.

You can’t easily say how much you earned last month.

You don’t know what customers owe you without searching emails.

You’re surprised by subscription renewals or recurring charges.

You avoid opening statements because it feels confusing.

These are signs to tighten your process. It doesn’t mean you’ve failed—it means your business is growing and needs a sturdier system.

Tools and systems: keep it simple, then scale

When you’re new, the best system is the one you’ll actually use. Many businesses start with a spreadsheet and a well-organized folder system. Others start directly with bookkeeping software that imports bank feeds and supports receipt attachments. Either approach can work if you’re consistent.

If you use a spreadsheet, make sure you still keep the underlying evidence: receipts, invoices, bank statements, and notes. A spreadsheet without documents is just numbers. If you use software, take advantage of its strengths: attach documents, set up recurring invoices, and reconcile regularly.

Whatever you choose, keep exports of key data periodically. If you ever need to switch tools, having copies of your transaction lists and reports makes transitions smoother.

What to do if you’re already missing records

Many people start a business and only later realize they should have been keeping better records. If that’s you, you can still get organized without starting over from scratch.

Steps to recover missing information:

Download all statements: Gather bank, card, and payment processor statements for the entire period you need.

Search your email: Look for receipts, invoices, and subscriptions using vendor names and keywords like “receipt,” “invoice,” and “order confirmation.”

Request duplicates: Many suppliers can reissue invoices or provide copies from your account portal.

Reconstruct from calendars and messages: For service businesses, client meetings and project timelines can help match invoices and payments.

Make notes where evidence is limited: If you genuinely can’t get a receipt, document what the transaction was for and why the evidence is missing. Don’t make a habit of it, but a clear note is better than silence.

Once you’ve caught up, set up a simple ongoing routine so you don’t end up in the same spot again.

Final checklist: the records you should keep as a new business owner

If you want a quick, practical checklist, here are the essentials to keep and maintain:

Income records: invoices, sales receipts, contracts/SOWs, payment confirmations, platform payout summaries.

Expense records: itemized receipts, supplier invoices, proof of payment, subscriptions, travel documentation, mileage logs, reimbursement reports.

Banking records: bank statements, credit card statements, cash logs, petty cash records, reconciliation notes.

Customer and supplier balances: accounts receivable and payable reports, credit notes, refund records, supplier statements.

People records: payroll reports, payslips, timesheets, contractor agreements and invoices.

Tax records: returns filed, calculations/working papers, sales tax/VAT reports (if applicable), tax payment confirmations, correspondence.

Assets and inventory: purchase documents, warranties, asset register, depreciation schedules, stock records, stocktake reports, write-off documentation.

Financing and ownership: loan agreements, schedules, repayment evidence, owner contributions/draws documentation, shareholder/partnership agreements (if applicable).

Admin and compliance: business registration, licenses, permits, insurance policies, key contracts.

When you keep these records consistently, bookkeeping becomes less about scrambling at deadlines and more about understanding your business in real time. The earlier you build the habit, the easier it becomes—and the more confident you’ll feel making decisions based on numbers you can trust.