To be sure that you are prepared for tax time or in the event of an audit, it is vital that you effectively manage and maintain your tax records. Every year at the end of the year, I take a look at how I have been keeping track of my business income and expenses for tax purposes.
In fact, I perform a personal audit by reviewing my bank statements, check books and reviewing the receipts that I have filed away in my records.
According to the Internal Revenue Service, after you file your tax return you will have many records that may help document items on tax return. Moreover, you will need these documents in the event your return is selected for examination. Here are Four easy ways to manage your record keeping:
1. Use manila folders or 3-ring binders to keep track of business expense and tax records for…
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