Keeping track of your company’s records is absolutely essential whether you’re just starting out, or you’ve been at it a long time. Good record keeping can save you money and ensure that you are in accordance with the IRS. Now, today we’re going to be talking a little bit about the kinds of records you should be keeping why you should do it. Are you ready to learn more about the benefits of good record keeping? Well, let’s get going!
What needs to be saved?
The short answer is almost everything. All of your business transactions and expenses should be kept track of no matter how small. Those tiny amounts can and will add up before you know it. You should also be keeping a careful record of your Business’ income taxes. You should have at least a six year supply in case the IRS comes to ask you questions. A clear record of all employees and their income tax information should be kept with a least four years of records. A record of your business assets should also be kept and updated regularly. Keeping clear records of all of these things will allow you to stay on top of your business’ finances and ensure that you won’t run into any issues with the IRS down the line.
Why keep so many records?
Well, as we mentioned, the IRS can often ask questions up to six years after a report is filed, so you’ll need to be able to answer them. Keeping healthy records is also going to help you stay organized with your business’ spending so that you can keep track of your growth and even detect patterns in your earnings. You should also keep thorough records so that you remain aware of what’s going on in your company. Financial surprises are often unpleasant. So, you should try to minimize them as you go. Now, all of these records can become cumbersome and hard to sort through if you’re keeping them only in hardcopy. Consider transitioning them into digital form to maximize on space and time.
Need help with your record keeping? We’re here for you.
No matter what kind of business you have, you want to spend your time working for your clients, not searching for paperwork. We can help with that. Our products can get you on the right track. If you want to learn more about Book 2 Net or ST Imaging and how we can help you to transition to digital age, please contact Micro Records Company, Inc. by calling 877-410-SCAN or visit MicroRecord.com! You can also follow us on Facebook, Twitter, LinkedIn, Google+, and YouTube as well! We are one of the leaders in our field and we would love to show you why.