Maintaining financial recordsQuestion Am I required to maintain financial records for my business?
Answer Yes. Federal, state and in some cases, local laws require you to maintain records of the financial activity of every business you operate. The primary reason is so you can report and remit taxes that you generate (income) and collect (sales).
But beyond what the government requires, maintaining accurate and up-to-date financial records and reports is a requirement for successfully operating any business.
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
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