Can you believe we are 5 weeks away from the end of 2013? It is time to start gearing up for taxes, purging files, and all the other things that invite procrastination. If you are like most people this time of the year, your filing cabinet drawers are begging for mercy, hoping you don’t stuff in one more file or receipt!
You might find yourself asking ….. How long should I keep my files?
First and foremost, in regards to taxes, you must keep all your records for 7 years.
When it comes to business files, depending on the business you are in, there may be some gray area, however, sticking to the 7 year rule, is a good rule of thumb.
If your office space is small a good tip is to keep one year prior and current year on site. If necessary, you can use a storage room or building to hold the other years’ records.
What should you keep? EVERYTHING.
Well not everything, but it’s my policy to keep AP files down to a minimum. Keep the invoice with the check stub stapled to it, but toss out a statement, a payment envelope, and any extra baggage that comes with your invoice, such as coupons you won’t use, etc.
If you are interested in backing up your paper files – keep an eye on us – we have some options coming up that will be announced soon. If you can’t wait – email us now.
As far as taxes go………….meet with your bookkeeper or accountant now to review where you are financially. Should you make a contribution to an IRA? Should you buy a piece of equipment? Are you ok to just leave status quo as it is? Have you spent enough money on your business this year – or have you spent too much? Have you paid your tax liabilities? – are you prepared, do you know the proper forms to file at year end?
All of these questions are excellent for your bookkeeper. If you don’t have one, please give us a call and we will be glad to set up a year end review to make sure you are on track and ready for 2014!
Lauree Adams, Owner
Adams Business Solutions
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