From Gregacct.com archives
| Keeping your business and personal records in a filing system may be
last on your list of priorities, but it's just as important as any other aspect of your
business and life, especially if you are on a tight budget. Think of it in other terms,
every receipt you save could translate to a deduction on your tax return. Then, on the
other side, if you miss an estimated tax payment or fail to deposit your payroll tax on
time, you could be handed a hefty penalty.
You may be wondering, what's the best way to
keep good records?
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First, and foremost, you should have a method of clearly
and accurately showing your gross income and expenses. Second, your system should be
something you are comfortable with. You will find it much easier to keep your records if
you are using a system you can understand, clearly and accurately is the key.
This is
just a brief overview of why saving your records is a good idea. Below, there is even more
exact information on saving your records and exactly how long you should hold on to them.
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WHAT TO KEEP & HOW LONG
| Audit reports |
Permanent |
| Accounts Receivable & Payable |
7 years |
| Bank deposit slips |
7 years |
| Bank statements |
3 years |
| Cancelled checks |
7 years |
| Contracts,Mtgs., Notes & Leases |
7 years--after they expire |
| Corporate Stock and Bond Records |
Permanent |
| Deprecitation schedules |
Life of business plus 7 years |
| Employee records |
Period of employment plus 7 years |
| Employment Applications |
3 years |
| Employment tax returns |
7 years |
| Entertainment records |
7 years |
| Expense reports |
7 years |
| Financial statements |
Permanent |
| Home improvement records |
Ownership period plus 7 years |
| Investment records |
Ownership period plus 7 years |
| Inventory records |
7 years |
| Journal & general ledger |
Life of business plus 7 years |
| Minutes of meetings |
Life of company plus 7 years |
| Partnership Agreements |
Permanent |
| Real estate records |
Permanent |
| Retirement & Pension Records |
Permanent |
| Shipping invoices |
3 years |
| Tax returns |
Permanent |
| Time cards |
7 years |
| Trademark Registration & Copyrights |
Permanent |
| Training Manuals |
Permanent |
| Union Agreements |
Permanent |
| Withholding Tax Statements |
7 years |
|
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