Business Records

Business Records

Why should you keep records?

Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.

What kinds of records should you be keeping?

You may choose any recordkeeping system suited to your business that clearly shows your income. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. More

How long do you need to keep your records?

The length of time you should keep a document depends on the action, expense, or event the document records. You must keep your records as long as the may be needed to prove the income or deduction to the IRS. There are no hard and fast rules or guidelines for determining how long to keep records. So, you should seek expert advice in dealing with this issue. More

What is the burden of proof?

The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of information and receipts (where needed) for the expenses. More

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