Starting Your Business/Keeping Tax Records
Recordkeeping
Except in a few cases, the law does not require any special kind
of records. You may choose any recordkeeping system suited to
your business that clearly shows your income.
The business you are in affects the type of records you need
to keep for federal tax purposes. You should set up your recordkeeping
system using an accounting method that clearly shows your income
for your tax year. See
Accounting Method . If you are in more than one business,
you should keep a complete and separate set of records for each
business.
Your recordkeeping system should include a summary of your business
transactions. This summary is ordinarily made in your books (for
example, accounting journals and ledgers). Your books must show
your gross income, as well as your deductions and credits. For
most small businesses, the
business checkbook is the main source for entries in the business
books. In addition, you must keep supporting documents.
Recordkeeping
Other Federal Records
In addition, The Occupational Safety and Health Administration
requires that you keep records of work-related illnesses and injuries.
Important References:
Publication
583
Starting a Business and Keeping Records
Highlights
of OSHA's Recordkeeping Rule