Menu Contact
The Gartzman Law Firm, P.C. Tax Law Attorneys
Contact Us Today For A Free Phone Consultation
770-648-0689

Why Good Record Keeping Is So Important

Whether you own a business or simply maintain your own personal finances, good record keeping is essential and important to staying organized and saving money.

More specifically, anyone that owns a business must keep accurate records at all times. Keeping good and detailed records is essential to long-term business success.

That said good record keeping consists of several important and necessary elements that must be considered. Let's take a look at a few of these examples.

Atlanta Tax Attorney

Monitoring the long-term and short-term progress of a business is one of the first reasons to always maintain good record-keeping. Good record keeping ensures that you are able to monitor the progress of your business in an accurate, organized and detailed way.

Good record keeping helps to show whether or not a business is improving, declining or maintaining steady growth. It also helps outline the products that are selling, and what changes may need to be made.

In the simplest of terms good record keeping can only serve to increase the likelihood that a business will succeed.

Tax Expert In Atlanta

Good record keeping also helps businesses prepare financial statements in the right way.

The importance of accurate financial statements cannot be underestimated when it comes to filing taxes or even selling a business. From a profit and loss statement to a balance sheet, there are many different types of financial statements that can help a business deal with the bank, creditors or the IRS in a more accurate and timely way.

As a note, a balance sheet typically shows assets, liabilities and equity in a business on any given date. Conversely, an income statement is designed to show income and expenses of a business over a given period of time.

Atlanta Tax Help

Good record keeping also facilitates being able to identify sources of income. Businesses typically receive money from different sources throughout the year. Good records can help to identify the sources of all income.

Businesses require this type of information as a way to separate nonbusiness receipts and business receipts as well as taxable and nontaxable income.

Accurate records also help to keep track of deductible expenses. This ensures that a business owner does not forget expenses when it comes time to file a tax return.

Trusted IRS Tax Lawyer In Atlanta

Finally, good record keeping helps businesses keep track of basis on property. This simply means that an investment in a property is accurately tracked for tax purposes.

The basis is used to figure the gain or loss when transacting a piece of property. When it comes to preparing a tax return, good records are essential. Records must support income, expenses and any credits that you may report.

Records must always be readily available for the IRS if they are ever called upon. Contact The Gartzman Law Firm, P.C. an Atlanta, Georgia tax lawyer for guidance and assistance in a wide range of tax related issues.

No Comments

Leave a comment
Comment Information

Contact Our Firm

The Gartzman Law Firm, P.C.
2851 Henderson Mill Road
Atlanta, GA 30341

Phone: 770-648-0689
Fax: 770-939-7743
Atlanta Law Office Map

Contact Us For A Free Telephone Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get In Touch