Small Business Reading Room

Friday, February 10, 2006

Business tax records- what to keep

That's right- March 15th is just around the corner.

If you are like me, you don't do your own business income tax filings, but your accountant still needs to have the right information from me in order to prepare the returns correctly.

Over the years, I've come to realize that organization is key. You can never underestimate the value of a good bookkeeping system!

The IRS recommends that your bookkeeping systems should include a summary of your business transactions. Your company books should show your gross income, deductions, and credits. The main source of these entries might be the business checkbook. All of your information should support the amounts shown in company tax returns.

Gross receipts can be supported by cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips, and any Forms 1099-MISC, according to the IRS. Purchases can be documented with canceled checks, cash register tape receipts, credit card sales slips, and invoices. Canceled checks, cash register tapes, account statements, credit card sales slips, invoices, and petty cash receipts will support expense figures.

So where can you find out more on this topic for free?

The IRS has resources for businesses available on its web site including:

Small Business Reading Room

Business tax records- what to keep

0 Comments: