• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Friday, February 3, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
stacked books

6 Types of Business Records and Receipts Every Small Business Should Keep

Wondering what kind of business records you should be keeping as a small business? Here are 6 things every business must keep track of for tax purposes.

by California Business Journal Editorial Staff
A A
Share on FacebookShare on Twitter

While running a small business can keep you busy, preparing for tax time gives you another challenge. If you haven’t kept accurate and updated business records, you could run into more headaches.

To properly determine your business’s profit or loss, you’ll need to have documents that show all your sources of income, any purchases made, and any expenses. You’ll also need to report changes in any property you own as well as finances related to hiring your staff.

Read on to learn six types of business records you must keep as a small business owner.

1. Proof of Income Received

Documentation showing income received will differ depending on the type of business you run. But you can often rely on deposits shown on bank statements, invoices, and cash register tapes.

If you’re an independent contractor, you may also receive IRS Form 1099-MISC from one or more clients. This will report your non-employee compensation.

2. Documentation for Expenses

As a business owner, you’ll likely have expenses for your office, supplies, travel, utilities, equipment, labor, insurance, and other items.

Invoices, receipts, and credit card statements are all helpful documentation you should keep. Other examples include canceled checks and statements from online purchasing platforms like PayPal.

3. Prior Tax Returns

Your business should have at least the last three years of tax returns. Not only might you refer to it when completing future returns, but it can come in handy if the IRS audits you or asks you about an item on the return.

Your past tax returns also have your business’s profit-and-loss statement. You can compare this to other years for tax planning purposes.

4. Employment Tax Forms

If you hire independent contractors or regular employees, you’ll need to keep the important documents that show the money paid to them along with any taxes paid.

You’ll issue and maintain W-2 forms for part-time and full-time employees, so it helps to learn about W2 Forms. You’ll also need to issue and keep IRS Form 1099-MISC for contractors who reach the $600 threshold.

ADVERTISEMENT

5. Documentation for Assets

The IRS will ask about the property, machinery, and other items you’ve purchased for long-term business use. Keep any documents showing when you bought these assets and how much they originally cost.

You’ll also need to keep records of any sales and disposals as well as regular depreciation.

6. Records for Purchases Made

If you operate a business like a store or manufacturing company, you’d buy parts and materials to build your products, or you buy finished items to resell. In either case, you’ll need to keep checks, receipts, invoices, and bank statements that show materials purchases.

Keep These Important Business Records

Both for the purposes of tax preparation and financial management, keep these business records for at least three years after you file your taxes. The IRS recommends extending the period to six or seven years for issues like unreported income or bad debts.

If you worry about maintaining a stack of paper at your business, consider using the digital option. You can often get electronic versions from your accountant. You can also scan documents to your computer or to a secure cloud service.

Click here for title loan information.

Tags: 6 Types of Business Records and Receipts Every Small Business Should KeepaccountantBusinesscloudcontractorscredit cardeducationemployeesfinancialindependentinsuranceloanmanufacturingonlinesmall businesstaxtaxes
ADVERTISEMENT
California Business Journal Editorial Staff

California Business Journal Editorial Staff

advertisement
ADVERTISEMENT
1REALTOUR-SAN DIEGO-WEB DESIGN

Commercial Relationship Manager 3, Wells Fargo Bank, N.A., Los Angeles, California:

Represent the bank in developing and maintaining client relationships within middle market and mid-corporate banking.

Position requires a Bachelor’s degree in Business Administration, Finance, or related field and 3 years of experience. Requires up to 20% travel.

To apply, send resume to recruiter_inbox@wellsfargo.com and reference Requisition # 000329 in the subject line.

Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • 6 Types of Business Records and Receipts Every Small Business Should Keep

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0

Latest Articles

Q&A with Jennifer Woods, Vice President and Associate General Counsel of FrontDoor on Why Companies Should Release Sustainability Reports.

Q&A with Jennifer Woods, Vice President and Associate General Counsel of FrontDoor on Why Companies Should Release Sustainability Reports.

Best Practices for Establishing Secure Password Protocols

Best Practices for Establishing Secure Password Protocols

How to Up Your Marketing Game with Real Estate 3D Rendering

How to Up Your Marketing Game with Real Estate 3D Rendering

Tips For Designing A Vinyl Banner For Your Business

Tips For Designing A Vinyl Banner For Your Business

15 Useful Animation Makers for Novice Entrepreneurs (2023)

15 Useful Animation Makers for Novice Entrepreneurs For 2023

What is FinTech?

What is FinTech?

IT Company Tips: How to Develop IoT Mobile App

IT Company Tips: How to Develop IoT Mobile App

Offline Marketing Strategies for Brand Visibility and Awareness

Offline Marketing Strategies for Brand Visibility and Awareness

Around the U.S.: Benefits of Getting a Loan From Hard Money Lending in Colorado

Around the U.S.: Benefits of Getting a Loan From Hard Money Lending in Colorado

6 Easy Ways to Win the Online Casino

6 Easy Ways to Win the Online Casino

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR