As tax season winds down, your desk might resemble a mountain of paperwork. Navigating what to keep and what to discard can be daunting. Let’s explore a critical topic for businesses of all sizes: record retention.
Whether you’re managing a small business or part of a large corporation, efficient record management is essential for staying organized and compliant.
Proper record retention helps you meet legal requirements. Many industries have specific guidelines on how long certain records need to be kept, ensuring you remain compliant with regulations.
Well-organized records save time and money. With everything in order, you spend less time searching for necessary documents, allowing you to focus on your core business activities.
Good record-keeping offers valuable insights into your business operations, aiding decision-making and supporting growth.
Keep a copy indefinitely. This document is crucial for correcting historical Social Security earnings or proving tax return filing.
Retain records like W-2s, 1099s, K-1s, receipts, canceled checks, bank statements, and mileage logs for three to seven years. Keep them for a minimum of three years from the later of the tax filing due date, filing date, or full tax payment date. This ensures availability for potential IRS audits. Check the IRS website for specific guidelines.
Transition to digital records where possible.
Utilize secure cloud solutions for easy access and enhanced security.
Establish and follow clear policies for retaining documents.
Regularly review your records and retention policies to stay up-to-date. If in doubt about whether to keep or discard a document, it’s safer to retain it unless you know it can be replaced.
Stay organized and keep your business running smoothly. For more detailed guidance, download our Record Retention Guide PDF for individuals and businesses.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
