One of the challenges individuals and small business owners have is – keeping good records! Why should you keep good records? We asked a few of our customers that question, and were surprised at the answer, which was – every time, some variation of – “Well, I’m just supposed to” or “My father/mother/wife/husband said it’s important” or the huge catchall phrase – “taxes”. But when we asked for more details about any of these reasons – people were at a loss. So – we thought we’d spell it out a little more plainly for everyone, in the hopes that making it clearer will make it easier.
Keeping good records –
- Makes doing your taxes easier, quicker, and relatively pain-free!
- Helps you avoid paying too much tax
- Helps you remember to pay the right amount of taxes at the right time if you’re paying quarterly taxes
- Helps you avoid paying interest and penalties because you forgot to pay the right amount of taxes at the right time if you’re paying quarterly taxes
- Helps you budget for any tax payments
- Helps us to check your tax position accurately
- Gives you the kind of information you need to help your business grow
- Gives you the kind of information you need to help you manage your individual income
- Makes it easier to get a loan
And the one most people don’t really know – the law says you need to! That’s right, the law says that everyone who pays tax has to keep records they need to fill in a tax return! So – records, people, keep records! It’s good for you – and it’s great for us!