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 you or your ; and your cash outflows or your ; your cash inflows Key Steps in Record keeping Keeping good financial records will save you time and make you money. If your records are organized, you'll 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. Reorganizing your financial documents every three months at a minimum Making sure your financial plan is set in stone and inflexible Keeping your documents in a place where everyone has easy access to them Ensuring that your family and/or executor can locate your financial documents Safely disposing of unneeded documents Creating a master list of your key documents Maintaining records for tax and insurance purposes Grade It Now Save & Continue Continue without saving 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 you or your ; and your cash outflows or your ; your cash inflows Key Steps in Record keeping Keeping good financial records will save you time and make you money. If your records are organized, you'll 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. Reorganizing your financial documents every three months at a minimum Making sure your financial plan is set in stone and inflexible Keeping your documents in a place where everyone has easy access to them Ensuring that your family and/or executor can locate your financial documents Safely disposing of unneeded documents Creating a master list of your key documents Maintaining records for tax and insurance purposes Grade It Now Save & Continue Continue without saving