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Good Record-keeping is an Essential Element of Tax Planning September 16, 2020

Posted by bradstreetblogger in : Business consulting, General, tax changes, Tax Planning Tips, Tax Preparation, Tax Rules, Tax Tip, Taxes , trackback

I can go on ad nauseum about the importance of good record-keeping. Of course, being an accountant, I may be more than a little biased. I won’t say that good record-keeping is THE most important piece of the business world BUT it is certainly near the top. You simply must have a way to keep score. Without knowing the score, you may be using the wrong playbook. Most businesses have poor records which results in inaccurate financial statements. Making decisions from incorrect data just sets the stage for a disaster. Eventually, most of your day will be wasted answering calls from past due or incorrect payments on your invoices, screwed up orders, improper or missed billings, unable to obtain credit, poor credit history and losing money all the while not knowing you are underwater until it is too late.
                                                -Mark

Now is a good time for people to begin thinking about next year’s tax return. While it may seem early to be preparing for 2021, reviewing your record-keeping now will pay off when it comes time to file again.

Here are some suggestions to help taxpayers keep good records:

Credit given to – IRS.gov – click here for original article

This week’s Author – Mark Bradstreet, CPA

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

–until next week.

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