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Accounting Recordkeeping

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Business

Lessons no : 19

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Lessons | 19


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Challenging 2024-09-12

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One of the main parts of accounting is recordkeeping or bookkeeping. Recordkeeping is the process of recording transactions and events in an accounting system. Since the principles of accounting rely on accurate and thorough records, record keeping is the foundation accounting.What are the types of record keeping? Make sure you keep track of these five types of records for your business. Accounting records. Accounting records document your business's transactions. ... Bank statements. Bank statements are records of all your accounts with the bank. ... Legal documents. ... Permits and Licenses. ... Insurance documents.How many years do you have to keep accounting records? Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return. Keep records indefinitely if you do not file a return