Written by Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe they’re safe provided they retain their documents for this period of time. However, if the IRS believes you have significantly under-reported your income (by 25 percent [...]
Posts tagged Financial statements
Storing tax records: How long is long enough?
10 things
Below is a list of 10 practices that you should run-through, and 10 practices you should avoid. In an effort to get this information out to my readers, I have taken this list and edited it to where from my outlook as owner of a small business accounting firm with our knowledge and experience makes [...]
The Income Statement (Profit & Loss) Part 1
The Income Statement is one of the three main financial statements. (The other two being the Balance Sheet and Cash Flow Statement.) The important thing to remember about an income statement is that it represents a period of time. As opposed to the balance sheet, which represents a single moment in time. The income statement [...]
The Company Balance Sheet
There are three major financial statements – the profit & loss, the balance sheet, and the statement of cash flow. The balance sheet is what drives the cash flow of the business. The balance sheet is an important financial-analysis and reporting tool that outlines the assets, liabilities and equity of the company at the end [...]
