Wednesday, January 5, 2022


Why should I keep records?

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

What kinds of records should I keep?
You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. 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.

How long should I keep 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 needed to prove the income or deductions on a tax return.

How should I record my business transactions?
Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. These documents contain information you need to record in your books.

What is the burden of proof?
The responsibility to substantiate entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove certain elements of expenses to deduct them.

How long should I keep employment tax records?
Keep all records of employment taxes for at least four years.



  1. This comment has been removed by the author.

  2. This blog helps me a lot! Now that I have ideas why record keeping is important, I can do my task easier since my workload won't be busy and it is not time consuming, I will apply this to make my work organize. I will have tracks in my business and I can look and update it anytime. Thank you so much for this informative blog about record keeping!

  3. I have a messy workload, I tend to mess up with my schedules because I don't have records in my business. Now that I know the importance of record keeping, I will apply this to my business, I believe that it will help me to get my task done easier and my time won't be wasted. Thank you so much for this informative blog! Record keeping is a best way for organizing task about my business and this will make good flow plans for my business.

  4. This blog is very important and helpful

  5. This blog is very important and helpful

  6. Lately, I haven't been keeping records of my random expenses made at daily basis as I thought they do not matter. But this explains thoroughly that recording such minor information can end up effecting my profit ratio. Well explained!