![]() In either case, you’ll need to keep checks, receipts, invoices, and bank statements that show materials purchases. If you operate a business like a store or manufacturing company, you’d buy parts and materials to build your products, or you buy finished items to resell. Our team understands that professional business forms relay a sense of order and reliability to your clients and customers, as well as enabling seamless day-to-day operations. You’ll also need to keep records of any sales and disposals as well as regular depreciation. Fill in and submit the form of accounts of receipts and payments of receiver / receiver - manager (form HE37) to update accordingly the companys register. Keep any documents showing when you bought these assets and how much they originally cost. The IRS will ask about the property, machinery, and other items you’ve purchased for long-term business use. You’ll also need to issue and keep IRS Form 1099-MISC for contractors who reach the $600 threshold. You’ll issue and maintain W-2 forms for part-time and full-time employees, so it helps to learn about W2 Forms. ![]() If you hire independent contractors or regular employees, you’ll need to keep the important documents that show the money paid to them along with any taxes paid. You can compare this to other years for tax planning purposes. Your past tax returns also have your business’s profit-and-loss statement. Not only might you refer to it when completing future returns, but it can come in handy if the IRS audits you or asks you about an item on the return. Your business should have at least the last three years of tax returns. (See BIRT instructions). Businesses with 100,000 in Philadelphia taxable gross receipts or less are not required to file the Business Income & Receipts Tax (BIRT) return. You can also file and pay your BIRT online. Other examples include canceled checks and statements from online purchasing platforms like PayPal. Use these forms to file your 2021 Business Income & Receipts Tax (BIRT). Invoices, receipts, and credit card statements are all helpful documentation you should keep. Documentation for ExpensesĪs a business owner, you’ll likely have expenses for your office, supplies, travel, utilities, equipment, labor, insurance, and other items. This will report your non-employee compensation. If you’re an independent contractor, you may also receive IRS Form 1099-MISC from one or more clients. ![]() But you can often rely on deposits shown on bank statements, invoices, and cash register tapes. Proof of Income Receivedĭocumentation showing income received will differ depending on the type of business you run. Read on to learn six types of business records you must keep as a small business owner. You’ll also need to report changes in any property you own as well as finances related to hiring your staff. To properly determine your business’s profit or loss, you’ll need to have documents that show all your sources of income, any purchases made, and any expenses. If you haven’t kept accurate and updated business records, you could run into more headaches. While running a small business can keep you busy, preparing for tax time gives you another challenge.
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