Maintaining organized and up-to-date financial records is vital for small business management. At LA Premier Tax, we emphasize the importance of good record-keeping. Our guidance and expertise help you establish and maintain a systematic record-keeping system, ensuring a smooth and stress-free tax filing experience. We offer guidance and expertise to help you establish and maintain a systematic record-keeping system, ensuring that you are well-prepared for tax season. By keeping your financial records in order, you’ll save time, reduce stress, and enhance your overall financial well-being.
In real-time, accurate accounting records tell you cash-on-hand and how good of a job you are doing managing and growing your business.
Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns.
You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
The length of time you should keep a document depends on the action, expense, or event the document records. You must keep your records as long as needed to prove the income or deductions on a tax return.
Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. These documents contain information you need to record in your books.
The responsibility to substantiate entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove certain elements of expenses to deduct them.
Keep all records of employment taxes for at least four years.
We can Help you with record keeping. We use Quickbooks online to assist clients with record keeping. A very powerful Accounting tool