Small Business Resource Guide 2002
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Index > Starting Your Business/Keeping Tax Records

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