Gig Harbor’s Trusted CPA Explains How Long You Need to Keep Your Business’s Records
As a business owner, you have to keep track of many aspects of your organization. As a result, you likely have an abundance of documents taking up valuable space in your filing cabinet, and you’re wondering how long you need to keep your documents on hand. Linda M. Shiraiwa CPA, PS in Gig Harbor, WA, wants to help. As an experienced CPA, she knows precisely what needs to stay in your filing cabinet and what you can get rid of. Here’s a breakdown of how long you really need to hold onto those business documents.
Business Tax Records
Each year, you file a tax return, and each year, you’re given a large stack of papers that accompany it. While these files take up space, it’s important to keep your records for at least six years. This ensures you’ll have the right paperwork and information on hand should the IRS find any errors on your past returns.
Ledgers & Expense Statements
Your regular financial statements, like your business tax returns, should stay in your filing cabinet or on your hard drive for at least six years. The last thing you want is be unprepared in the event of an IRS audit. If you have your expense records and ledgers readily accessible, you’ll be able to work with your CPA to identify any potential errors.
HR Files & Employee Information
As your business grows, you’ll need to hire more employees. However, all these new staff members come with lots of paperwork, from tax records to physical job applications. Keep all documents for current employees on hand at all times. For former team members, you can consider disposing of them securely no sooner than seven years after they leave your organization. If you have questions or concerns about a specific employee, your bookkeeping specialist can help.
Instead of handling your own payroll and bookkeeping, work with an experienced CPA to simplify your filing. Linda M. Shiraiwa CPA, PS has helped small business owners in the Gig Harbor area streamline their bookkeeping efforts for years. Learn more about her services online, and call (253) 858-6030 to schedule a consultation.
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