How long to keep expense reports

Understanding how long should you keep business records will help you avoid these problems. The Internal Revenue Service has established some basic record-keeping rules for tax documents. Outside the tax arena, there's remarkably little guidance about how long you should keep business paperwork.

Most lawyers, accountants and bookkeeping services recommend keeping original documents for at least seven years. As a rule of thumb, seven years is sufficient time for defending tax audits, lawsuits and potential claims.

These periods are not offered as final authority, but as a guide. Your CPA, outsourced accounting service or tax attorney may recommend a different approach based on the rules of your industry and the specific needs of your business.

At year-end, your CPA or tax professional can review your documents and completed financial reports side-by-side, making tax filing a breeze. Learn more. Hold up. Before you toss them, double check to see whether anyone else you do business with might need them.

Creditors, business lawyers, and insurance companies all sometimes require you to keep records longer than the IRS does. This is really just another benefit to keeping digital records. Instead of worrying whether you should be keeping or getting rid of them, you can archive them permanently. Or even better, digitize it. We're an online bookkeeping service powered by real humans.

Bench gives you a dedicated bookkeeper supported by a team of knowledgeable small business experts. Your bookkeeping team imports bank statements, categorizes transactions, and prepares financial statements every month. Get started with a free month of bookkeeping. This post is to be used for informational purposes only and does not constitute legal, business, or tax advice.

Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. It helps save you space, time, and money. At Blue-Pencil, our office shredding programs offer clients the opportunity to contract their documentation destruction management and ensure that everything will be handled securely and properly destroyed and recycled.

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You can rest assured knowing your business documents will be both stored and destroyed when the time comes in a safe and secure manner. Blue-Pencil helps empower Canadian organizations to reach new heights with friendly and efficient document management services. Customer service is not only a slogan but something we practice by investing in our strategic partners. Located in Oakville, we have grown our document security business over the past 10 years, serving more than 6, organizations including small and medium-sized companies as well as Fortune businesses.

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Shredding Services Data Management. My documents were safe and disposed of properly. Not only would I continue to use Blue-Pencil, I would recommend them to everyone. What Are Business Documents? Income Records Business owners must keep track of all the gross income total income before deductions, including deductions related to goods sold. Expense Records You should always get receipts or other proof of purchase documents when you buy something for your business.

Property Records It is also important to keep a record of all the properties you have bought or sold. These records should include important information such as: Who sold you the property How much you paid for the property The date you bought the property The CRA mentions that these documents will help you calculate your claim for claims such as capital cost allowance the deduction you can claim over year-long periods for the cost of depreciable property — source.

Storing and Disposing of Documents — Best Practices Keeping records is one thing; keeping records organized is another! Here are some tips for do-it-yourself document organization: Keep all of your receipts: Consider organizing them by month, product, or another category that makes sense to you and your business Note your receipts: As mentioned above, not all receipts come with descriptions. It's wise to keep them separate from your other documents. That way you'll know where they are at all times.

When it comes to record-keeping, it's better to be safe than sorry. Worried about space? Purchase tall filing cabinets instead of short ones. That way you'll make the best use of the vertical space in your office. Better yet, you can rely on digital records backed up offsite. You can deduct cell phone bill if it's related to your business. Find out how to write off your cell phone bill and the cost of the phone. Learn about rules for business licenses and permits. Know where to get them.

Start clean and avoid legal surprises and fines. Small busines legal advice can get expensive, quickly. Here's what you need to know about when you should seek legal advice. These important tax dates for deadlines for the self-employed for Make sure you're aware of these before facing the consequences. Tax day can shift from year to year. Learn about tax day and beyond, as well as when self employed workers have to pay quarterly estimated taxes. Sooner or later most small business owners will face a legal dispute.

The best way to handle these disputes is usually through mediation and arbitration. Log in. Get started. Small Business Tips. Justine Rabideau. What are business records?