If I wanted you to keep my income and expense records, would you need to have access to my bank accounts?
We offer a wide range of bookkeeping services that allow us to keep your records without having access to your bank accounts. For example, you can provide copies of your bank statements from which we can post your income and expenses. Call us and we can discuss your specific needs.
Do I have to keep my business receipts?
You should retain your business receipts (both income and expense) for at least ten years. You may need them as backup detail should you ever be questioned by the IRS or FTB during that ten year period. See below for a more complete list of what to keep and for how long.
How long should I keep my business financial records?
According to the IRS, you should keep those records:
- General ledgers and journals
- Payroll records, including W-2s, 940s, 941s
- Year-end financial statements
- Tax returns and supporting documents
- Articles of incorporation, bylaws, meeting minutes, …
- Retirement plan records
- Mortgages and deeds
- Bank statements and cancelled checks
- Accounts payable and accounts receivable documents
- Invoices and billing information (customers and vendors)
- Contracts with clients and suppliers
- Expense reports
- Employee agreements/contracts/termination records
- Documents related to litigation
- Inventory documentation
- Employment applications
- Employee disability and illness benefit records
- Expired insurance policies
- General correspondence
If you keep our payroll information, can we print the actual checks in our office?
Yes, you may print and issue the checks from your office with the information that we securely provide to you. We can also print the checks in our office for your signature and delivery.
How do I know if I need to send a Form 1099 to someone who did work for my business?
For each non-employee person to whom you paid at least $600 during the tax year, you must provide a Form 1099-MISC by January 31 of the following year.
The following are examples of persons who might need to receive a Form 1099 from you if your payments to them equal $600 or more:
- Any person who performs work as an individual
- Any person who performs work as the sole proprietor of a business (EX: Joe Green dba Joe’s Lawn Care)
- Any person who performs work as a member of an LLC business entity (EX: Mary Smith dba Mary’s Accounting Service, LLC)
- Attorney’s fees related to your business or rental activity
PAYMENTS TO CORPORATIONS ARE CURRENTLY NOT REQUIRED TO BE REPORTED ON FORM 1099 except if the corporation is a law firm to whom payments were made as noted in #4 above.
We are pleased to offer this 1099 reporting service to you even if we have not kept your business records. We would need the following information for each person who will receive a Form 1099:
- Social Security Number or Tax ID Number
- Amount Paid
We are available to answer any questions that you may have regarding your specific business and relevant outside workers. Contact us as soon as possible so you don’t miss the January 31st deadline and be subject to non-reporting penalties.