SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/founder-records-to-keep

What must a small business recordkeeping system clearly show?

It should clearly show income and expenses.

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  1. Only total yearly sales
  2. Only the owner's hours
  3. Income and expenses ✔

Why: Keep transaction summaries and supporting documents that explain money earned and costs claimed. The records must be good enough to support figures reported on tax returns.

Huh, didn't know that: Invoices, receipts, deposit records, payroll records, and bank statements often provide supporting detail.

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Why did the receipt stay organized? It wanted to make a good record.
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References

Answer: Income and expenses. Keep transaction summaries and supporting documents that explain money earned and costs claimed. The records must be good enough to support figures reported on tax returns.

  1. IRS recordkeeping questions for small businesses www.irs.gov/newsroom/common-questions-about-recordkeeping-for-small-businesses
    Small business owners should choose a recordkeeping system that clearly shows income and expenses.
    Checked 2026-10-11.

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