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Friday, November 11, 2016

Why ALL Business Owners Must Keep Accurate & Complete Records


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


 

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