In the rush to get orders completed, client projects started, and inventory put away, some small businesses end up neglecting record keeping processes. Though it feels easier to fudge a few things now, meticulous records matter in many aspects of running your business, from keeping track of employees to filing your business taxes. They can not only help you find important documents down the road, but also save you from legal troubles down the road. Here are four reasons a small business should keep meticulous records.
Tax Season is Easier
Businesses take a lot of tax deductions. Sometimes those deductions depend on your keeping track of your receipts and business expenses. The IRS won’t accept bank statements and bookkeeping, no matter how detailed, as adequate records to prove you actually incurred those business expenses. They want receipts.Keeping track of receipts may seem annoying and messy, but it’s an essential part of your business’s record keeping. To make it easier on yourself, scan your receipts with a Neat scanner or take pictures of them with your phone. Digital files will keep your paper clutter down, and they’re much easier to archive and reproduce when tax season comes and you’re trying to figure out your total deductions. By the way, you’re allowed to write notes and clarification on those receipts, too. Write down which client you took to which restaurant for what kind of meeting, so you can jog your memory when you look at the receipt a year later.
