Good recordkeeping is the backbone of every successful business. It helps you monitor performance, prepare taxes, and stay compliant with federal, state and local requirements.
Items to Keep:
- Income and sales records: invoices, deposit slips, Point of Sales (POS) reports
- Expense receipts and invoices: supplies, subscriptions, travel
- Bank and credit card statements
- Payroll documents: timesheets, pay stubs, tax withholdings
- Tax filings and correspondence: federal, state and local returns
Tools & Tips:
- Use accounting software (QuickBooks, Xero, Wave) to track income and expenses in real time
- Set up a dedicated business bank account to avoid mixing personal and business funds
- Digitize paper records with a scanner or app and store them securely (Google Drive, Dropbox, etc.)
- Keep receipts organized by category (e.g. marketing, supplies, travel) and date using folders or software
- Review records monthly to catch errors early, reconcile accounts and stay audit-ready
Retention Guidelines:
- Keep tax returns and supporting documents for at least 7 years
- Payroll records should be retained for at least 4 years
- Bank and credit card statements, invoices and receipts should be stored for 3–7 years depending on state requirements and business structure
Final Thought:
Staying organized with consistent systems isn’t just for tax season: it protects your business, simplifies decision-making and reduces stress all year long.
