Keeping Good Records is Good Business
Maintaining good records is important to help meet your tax and legal obligations. The right record keeping system not only helps satisfy these obligations, but it may save you money and time. Here’s what to consider for your record-keeping system. What Records Do You Need to Keep? The first step is identifying the records you need to maintain. The obvious examples include leases, contracts, payroll and personnel records, and a range of accounting and finance information, such as invoices, receipts, checks, payables, and inventory. Please consult a professional with tax expertise regarding your individual situation.¹ How Do You Want to Keep Them? Record maintenance can take three basic forms: Paper-based —It’s old school, but maintaining records in file folders stored in a metal cabinet may be sufficient. However, there is a risk of files being damaged or destroyed with no back-up. Computer-based —Maintaining records on computers saves space and makes management easier. Con...