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For How Long One Should Keep Business Tax Records & Receipts? [Infographic]
Every company has to manage a plethora of tasks on a daily, weekly, monthly, and yearly basis. This includes dealing with the issues related to operations, marketing, sales, customers, employees, and more. Adding to this complexity is the burden of managing accounts simultaneously. Accounting demands expertise and accuracy, and business owners who fail to make it a priority are at the receiving end of the IRS.
Bookkeeping- One of the essential tasks to perform in any company, irrespective of its size, for keeping track of the financial statements. Accurate recordkeeping is imperative to keep the financial records intact that further help to prepare taxes. In this digital era, bookkeeping software, apart from helping with the management of books digitally, help gain valuable financial insights, make informed decisions, and keep compliance with the IRS regulations.
Now, let us throw some light on the IRS regulations. There are a lot of tax records and receipts which are mandatory for the businesses to keep for a few years, and most of the business owners do not even know about it. They are of the view that they do not need to maintain financial records after they have filed the taxes for the financial year. However, it is not true as IRS can demand a copy of your financial records at any time during the specified years against the financial record type. This means that it is a must for the businesses to keep records as per the specified years by IRS to avoid any kind of penalty. The reason business owners fail to keep compliance with most of the IRS regulations is because they lack the time and expertise to understand the complexity of the same.
So, let’s get started and know for how long one should keep the tax records and receipts!
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