-
The Importance of Record Keeping for Tax Purposes | Layton & Stacey Smith
- 2024/10/17
- 再生時間： 43 分
- ポッドキャスト
-
サマリー
あらすじ・解説
By a show of hands, how many of you actually keep financial records for tax season?
We’re pretty sure not many hands are up right now.
If you’re a sole proprietor, you better have your hands raised at this moment. Even if you’re a 9-to-5 worker, you may want to start keeping financial records. They just might come in handy for you.
You know what to do now. Grab your drink (water or coffee) and cigar, and join us on our sunny, beautiful patio to learn the importance of keeping records for tax purposes.
Why Should You Keep Financial Records?
You spend so much money throughout the year, and you surely aren't keeping count of how many times you swipe your debit card. Now that it’s tax season, it’s hard to remember which purchases you can count towards a tax credit. It also makes your tax advisor's job ten times easier. Keeping track of your financial records allows you to make this wonderful season a stress-free one. Another important reason for record keeping is to ensure you are tax compliant with the IRS. We share examples of our clients who made the mistake of not keeping records. Don’t become like them, folks! Oh, let’s not forget one word: audit protection, or more like audit assurance.What Type of Records Should You Keep?
These are the types of records you should keep for tax purposes: Income records Expense records Investment records Property records We provide examples of each type of record so you know what documents to prepare while filing your taxes.Special Attention to Self-Employed Individuals and Small Businesses*
It’s even more important for you to keep records of your financial statements. This includes the following: Income and expense records Mileage logs Payroll records Poor record-keeping within this group can put you in deep water with the IRS. Develop a system to help you keep track of the above information so you’ll be ready during tax season.Digital vs. Manual Record Bookkeeping: Which Is Better?
Since COVID, most people are switching over to digital record bookkeeping due to its advanced features. Stacey shares why this is a better option for everyone in this day and age. If you choose to have a personal accountant keep track of your records instead, make sure they’re qualified.“If you are selected for an audit, try to gather at least 90% of your financial records. This may give you some grace from the IRS.” — Stacey Hoffman Smith.