Question
7. Keeping good records The Importance of Good Record Keeping Good record keeping is an important discipline as you map out your financial goals. Imagine
7. Keeping good records
The Importance of Good Record Keeping
Good record keeping is an important discipline as you map out your financial goals. Imagine if you were notified of an IRS audit: How difficult would it be to get all the necessary past information together? If you have all the data in a single, well-organized place, however, you will be ready for any situation.
How do you get organized?
One good record-keeping tip is to prepare your financial statements at least . | |
Ideally, keeping will help you summarize all your transactions. | |
A ledger has sections where data is recorded for what you own or your ; what you owe or your ; your cash inflows or your ; and your cash outflows or your . |
Key Steps in Record Keeping
Keeping good financial records will save you time and make you money. If your records are organized, youll have an easier time:
Compiling a budget | |
Pulling together an updated financial statement | |
Accessing your records in an emergency | |
Preparing your taxes | |
Preparing for an IRS audit | |
Defending a credit report |
Which of the following are important steps in financial record keeping? Check all that apply.
Maintaining records for tax and insurance purposes
Keeping your documents in a place where everyone has easy access to them
Safely disposing of unneeded documents
Ensuring that your family and/or executor can locate your financial documents
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