Tax tips from Elmwood Records Center

The Internal Revenue Service (IRS) requires that you keep certain tax records for certain time periods and other records for different time periods.

Tax time can be very stressful for any business. Small business owners in many cases do everything for their company. Large companies have a department to handle only the financial part of the business. Keeping up with your record keeping throughout the year is vital for a smooth tax audit. Here are a few tips from the IRS  to help you prepare for tax season.

Set up a Good Accounting Software System- If you want to keep good tax records, the first thing to do is have a good accounting software system in place. You have to keep good accounting records in order to keep good tax records.

Remember That you Have the Burden of Proof When it Comes to Your Business Taxes- When you make an entry, such as income, expenses, and deductions, on your tax return, you have what is known as the burden of proof for them. You have to be able to prove that you are entitled to certain deductions and expenses in order to be eligible to take them as deductions.

Good Record Keeping Starts with the Source Documents for Accounting Journals-The original paper documents should be kept with the ledgers where you record the transaction. As a backup, in case of fire or other disaster, each source document should be scanned into the correct computer file and be stored on a flash drive.

How Long Should you Keep Your Tax Records? According to the Internal Revenue Tax Code, you must keep your records as long as they may be needed for administration of any part of the tax code.

Don’t stress next year- Start this year off right with Professional Records Management.

Professional Records Management can be affordable for every size business. Contact Matt for your Records Practices Audit. or (504) 415-1407

(Tax tips are from )

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