MORE RECORD KEEPING...
If the IRS knocks at your
door, you’d better be prepared—with all your records in
order.
Records help you:
-
Monitor the progress
of your business
-
Prepare your
financial statements
-
Identify source of
receipts
-
Keep track of
deductible expenses
-
Prepare your tax
returns
-
Support items
reported on tax returns
|
 |
Computers make record keeping
easy. Choose any system that clearly shows your income and
expenses.
Even though you’ve been
diligent, don’t throw the records away once you file your
taxes. You must keep your records as long as they may be
needed to prove the income or deductions on a tax return.
This time period is never less than three years from the due
date of the return and can be longer. You should also keep
copies of your filed tax returns.
Top of Page
