Proper and Clean Bookkeeping for Small Business taxes

Keeping good records is essential to monitor the growth of your small business, prepare financial statements, and prepare your small business tax returns. It also helps to identify receipts, invoices, and keep records of deductible expenses. The law does not require a particular style of record keeping, but the system you use for your small business will be more valuable if it clearly shows your monthly profits and losses, especially when applying for a small business loan. It is advisable to keep records for as long as you may need to prove income or deductions. Lenders frequently request 2 to 3 years of previous financial records. You have the “burden of proof” or responsibility to prove the entries made on your small business tax returns. Please email us for more information about small business taxes and small business bookkeeping.