Many businesses find record keeping a real hassle. I know, sometimes record-keeping seems too time-consuming and too elementary to bother with. Trust me, it’s better to deal with the headache now than suffer trouble down the road. The IRS can be very strict on businesses regarding good record-keeping, especially in the case of an audit - so it’s best to have your ducks in a row. In short, good records can help you monitor your business, prepare financial statements, identify sources of income and expense outflows, keep track of deductible expenses, and lastly, support items reported on your tax return. It is important to keep tabs on your business so you can tell what track it is taking. If you don’t keep sound records, you can never REALLY gauge the success or failure of your business, and once it’s too late…it’s too late. Your tax returns can really help develop this picture; however, without good information, you aren’t going to get a great picture and no auditor is going to accept the fact that you were too busy to keep track of everything.

Certain records should always be maintained. These include (but are not limited to) records supporting:
• Gross receipts
• Purchases
• Expenses
• Travel, Entertainment, and Gifts
• Assets
• Taxes

For more information on how long to keep these records, view this IRS article.

Keep in mind that the burden of proof almost always falls upon the business itself. If you can’t prove something, then as far as the IRS is concerned, it is meaningless. Legitimize your business records quickly and efficiently with TaxSlayer Books – the most affordable bookkeeping software you’ll find with all the features you need to organize, track, and report your financial transactions. With a robust reporting model and strong security and backup features, TaxSlayer Books makes record-keeping a no-brainer. Make sure you take advantage of our low price now and get your record-keeping up to speed before tax time passes you by! For more information, visit www.TaxSlayerBooks.com today!