 | Richard Ciemny is Vice-President, Director & Branch Manager of The First National Bank of Anthony, Wichita Branch. Richard has been in the banking profession for many years in the Wichita area. He has been an active member of the Kansas Bankers Association and the Community Bankers Association of Kansas. The First National Bank of Anthony, Wichita Branch, is located at 10111 W. 21st St. North. You may contact Richard at (316) 721-9000. |
Banking & Finance
2005-05-01 09:03:00
Checklist to open a business
ANSWER: As a matter of fact, there are several. Over the next several issues, I will try and provide you with a list of items that need to be attended to. Many of these things can also be found elsewhere, in places like the IRS's website at http://www.irs.gov/For the first four parts of this series, please see the January '05 through April '05 issues. This time we will talk about 'recordkeeping' and the questions that are usually asked.QUESTION: Why should I keep records?ANSWER: Good records will help you monitor the progress of your business, prepare your financial statements, identify source of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.QUESTION: What kinds of records should I keep?ANSWER: You may choose any recordkeeping system suited to your business that clearly shows your income. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.QUESTION: How long should I keep records?ANSWER: The length of time you should keep a document depends on the action, expense, or event the document records. You must keep your records as long as they may be needed to prove the income or deductions on a tax return.QUESTION: How long should I keep employment tax records?ANSWER: You must keep all of your records as long as they may be needed; however, keep all records of employment taxes for at least four years.QUESTION: How should I record my business transactions?ANSWER: Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. These documents contain information you need to record in your books.QUESTION: What is the burden of proof?ANSWER: The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them.
