• James D. Lynch

Recordkeeping for Small Businesses

Small business owners should keep good records. This applies to all businesses, whether they have a couple dozen employees or just a few. Keeping good records is an important part of running a successful business.


Good records will help the business owner:

● Monitor the progress of their business.

● Prepare financial statements.

● Identify income sources.

● Keep track of expenses.

● Prepare tax returns and support items reported on tax returns. (The burden of proof is on the small business owner to validate expenses deducted on tax returns.)


A good recordkeeping system includes a summary of all business transactions. Except in a few cases, the law does not require special kinds of records. Small business owners may therefore choose any recordkeeping system that fits their business. They should choose one that clearly shows income and expenses.



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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665

info@jimlynchlaw.com

(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.