Records / Receipts
Record Keeping & Receipts
Recordkeeping is an area of business management that can be both intimidating and troublesome. For many, it can be the primary factor that discourages a person from going into business in the first place. However, keeping accurate records can be simple and worry-free, if an easy-to-use recordkeeping system is in place. “MAKING TAX A GAME” provides just such a system complete with instructions for use.
It is important to understand that day by day accuracy in your recordkeeping leads to accurate tax returns. Your daily income and expense records will eventually be transferred to your tax returns at year end. You must make your business records available for inspection by the IRS at any time. If the IRS examines any of your tax returns, you may be asked to explain the items reported. A complete and exact set of records will speed up the examination process. This is why it is imperative to learn what records to keep.
The requirements are:
You must keep records to correctly figure your taxes.
Your records must be permanent, accurate, complete, and clearly establish your income, deductions, and credits. The law does not require you to keep your records in any particular way.
Insurance coverage purchased by the business should be in the name of the employee-spouse, not the employer-spouse.
If you have more than one business, you must account for and report each activity separately.
“MAKING TAX A GAME” examines the many recordkeeping choices that a taxpayer may choose from and then provides one right in box. It is a quick and easy folders method with explanations right on each folder.
“MAKING TAX A GAME” also explains what constitutes proper documentation, what needs to be kept, and how long the records should be kept. In addition, there is section on the recommended method of payment: cash, check, or credit card.