8 Essential Recordkeeping Rules for the Self-Employed

When you start a business, keeping great records probably isn’t at the top of your to-do list. Most new entrepreneurs are so focused on finding customers and building revenue that everything else takes a backseat.

But whether you like keeping records or not, it’s one of the most important responsibilities you have when you’re self-employed. The success of your business depends on how you manage data, account for financial transactions, and store and retrieve your records.

8 Tips for Entrepreneurs to Keep Good Records

1. Separate your business from personal expenses

2. Get a separate bank account for your business

3. Find an accounting system suited to your business

4. Have a backup plan

5. Use recordkeeping to simplify tax preparation

6. Always get receipts for business expenses

7. Know how long to keep business records

8. Get help from a professional

Follow these eight recordkeeping rules to stay compliant with the IRS and better understand your business now and in the future.

1. Separate your business from personal expenses

To properly track money that moves in and out of your business, all financial transactions should be kept in their own set of...

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