The last little one I had that attended nursery, the nursery used to give me photocopies of their observations and me mine so we each worked on the others next steps where appropriate. I put the copies in his lj here and used their obs to do my tracking with, obviously I didn't do as many obs as I. Would had he not gone to nursery so my contribution was a lot less, I just linked to lore areas so my tracking wasn't affected if that makes sense.

How you observe and track is up to you, no where in the eyfs does it say it has to be written, you need to find a way that suits you and that you can share with parents, other childcare workers/professionals involved in the child's care and of course Ofsted.