Consider Going Paperless With Your Financial Documents

Considering Going #Paperless With Your Financial Records?

Receipts and other financial documentation are necessary to retain for specific periods of time for #audit purposes. The tax authorities want to see the actual receipt.

The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep records that support an item of income, deduction, or credit shown on your tax return until the period of limitations for that tax return runs out.

Maintaining financial records in a paper format becomes problematic when records need to be maintained for 3 years – or more. Ink on paper receipts fades and become illegible. Locating a specific piece of paper in a dark storage unit? With an “iffy” filing system? A significant amount of time and effort can end up being utilized - IF the required paperwork can be located.

No receipt or documentation found? Your expense may be disallowed.

X-Border Bookkeeping LLC is a strong proponent of going paperless. Our protocols and procedures are discussed in the next blog.

Stay tuned….

#Multi-currency and cross border #bookkeeping done right - so you can focus on your business!