Keeping Records and Paying Taxes
In This Chapter
• Creating paper trails
• Being a pack rat
• Managing statements
• Taxing sales
By this point in the book, you probably have realized you’ll be generating lots of paper as your business grows and transactions increase. Unless you are a pack rat who likes to keep everything, at some point you need to decide what information is critical to keep and how long you need to keep it.
Many business tasks involve significant amounts of recordkeeping to be done properly. For example, paying bills for major vendors is not as simple as paying each invoice when it arrives. You also need to reconcile monthly statements and manage errors in invoicing. The records you keep help you avoid overpaying ...