Record-keeping is a key a part of running any kind of business. It helps you manage your earnings and expenses, monitor the healthiness of your business, produce financial audits easier and prepare taxes more accurately. But it can be quite a daunting process.

The IRS recommends that you keep pretty much all documents important to meet duty requirements pertaining to quite three years, but it really is important to know how long several types of records should be kept and whether they must be stored in daily news or digital format. This will help to you avoid litigation, succession planning problems and the wrath of your tax gentleman.

A good record-keeping system includes a journal and journal for tracking all of your business transactions. These publications should contain information about the organization activity revealed on your supporting documents, including receipts and invoices.

Sales log: This kind of log should contain information about each sale, including the date of the deal, type of product or service and how much you available. It also should incorporate a list of buyers and the sum they are obligated to pay you.

Accounts receivable record: This record should consist of information about each customer so, who owes you money intended for goods or services your business delivered. It should also include a list of customers who also should not be given credit due to past inability to pay off.

Business expenditures log: This log should contain information about each expense your company incurs, including rent, energy and incomes. It should have a list of expenses that you deduct mainly because business bills.

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