Safekeeping of your business's receipts is very important for bookkeeping. If you find yourself having several receipts laying around, there might be a problem with your financial organisation.
It is therefore important to seek help or to find ways to organize your business receipts. One of the most asked questions about business receipt is for how long should one keep them.
As a startup business, it is important to keep your business receipts as long as you can because they play a key role in the financial details of your business for tax and legal purposes.
A business receipt as a proof of ownership of something that was purchased as well as an indication of a financial transaction that occurred. A receipt can also be an indicator of tax details which can be important when you are paying taxes.
For How Long Should I Keep Business Receipts?
It's better to be safe than sorry as the saying goes. This means that if you have a way to effectively store your business receipts, you should do so for as long as you can.
Going by the rule of the thumb, you should keep your receipts for at least 3 years which is the period where auditing can be done. Depending on the type of startup business that you have certain laws might require you to store receipts for over 3 years.
Reason To Hold Onto A Receipt For A Longer Period
There are several benefits of storing your receipt in your business. These include;
- Receipts will help you to be ready for a business audit.
- Receipts act as support information for your tax returns.
- They help you keep your financial records accurate.
You might be wondering how to store your receipt safely for such a long time. However, today's technology has made it easy for us to store scanned documents online, including receipts.
There is software that you can use to keep your receipts safe for quite a while. This eliminates the need to keep the receipts in paper form and instead you can keep them in digital form which can be safer.
If you're looking for help organising your business receipts, you can hire a professional bookkeeper from Shoebox Books. They will help you in your business finances which will facilitate the growth of your startup business and ensure you are covered for any legalities regarding storing receipts. Contact Shoebox Books today to find a bookkeeper.
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