Record Keeping

Organizing your financial records now will make filling out your tax return easier next year. It will also help if your return is audited.

It doesn’t matter what type of record-keeping you choose. You can even use a shoebox!

What does matter is how long you keep certain documents. In general, you need to keep things like tax returns, bills, credit card statements, and cancelled checks for three years. More complicated documents that support stock transactions and your IRA should be kept for at least four years.

If you run a business, make sure you keep all these related documents for a minimum of four years.

Find out more at IRS.gov.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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