Financial Guides - Record Keeping

It is a good idea to keep all of your receipts and any other records that you may have of your income and expenses. These will come in use if you are audited. It is best to hold on to these records for at least seven years.
It is advantageous to categorize your income and expenses:
  • Income
  • Exemptions
  • Medical Expenses
  • Taxes
  • Business Expenses
  • Education
  • Travel
  • Auto
If you are audited, it is likely that the auditor will ask to see the last three tax returns. It is recommended to keep audited tax returns forever.

An added benefit of keeping your tax returns is that you can see what you claimed last year, allowing you to adjust for the current year.

If you purchased goods that you plan to sell later, you should keep the receipts to calculate your gain or loss on it correctly.

  • Anything regarding the property you own and any fixes and repairs that you perform.
  • Receipts for any jewelry or other valuable collector's items
  • Records for capital assets, stocks, bonds and such
If you are an employee of a company, your system need not be complex - you can keep your records separated in folders.

If you are a business owner, you may want to consider hiring a CPA.