As a business owner, there are many reasons your must
keep accurate and complete records for your business operations.
1-The IRS Requires Business Owners to Keep Proper
Business Records - In order to file timely, accurate, and complete tax returns,
the IRS requires all business owners to keep proper business records.
2-Minimize Taxes & Audit Protection - With accurate
and complete business records, taxes can be minimized, IRS penalties can be
avoided, and the business owner will maximize their chance of success in the
event of an IRS Audit.
3-Preparation of Financial Statements - Proper business
records let you prepare a complete set of financial statements.
4-Obtain Financing - Lenders will generally require
business owners to provide a complete set of financial statements when applying
for a business loan.
4-Monitor Business Operations & Progress - Up to date
business records can help a business get started, run efficiently, and grow.
Potential problems can be identified early on and opportunities can be taken
advantage of.
5-Avoid Potential Legal Issues - Proper business records
will help avoid potential problems with both customers and suppliers should a
dispute arise.
6-Selling Your Business - Should the time come when you
wish to sell your business, buyers will generally want to see prior tax returns
and financial statements.
This article was written by Donald M.
Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net
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