QuickBooks 2020 All-In-One For Dummies by Stephen L. Nelson
Author:Stephen L. Nelson
Language: eng
Format: epub
ISBN: 9781119589839
Publisher: Wiley
Published: 2019-12-11T00:00:00+00:00
Consider the old records that you may need in the future to calculate an item for your tax return. These records need to be retained. If you bought a factory 30 years ago, for example, keep those purchase records until 3 (or 6) years after you sell the factory.
Consider that in some industries, other document-retention rules or regulations exist. If you’re a physician, you keep your old patient records — and this may include patient accounting information — for longer than three years. These other document-retention rules vary by industry. Find out what the rules are for your industry.
Consider the risk of retaining confidential information too long. Finally, though you might ponder all the forgoing points and conclude that you should keep your financial records in perpetuity, note that this approach creates risks, too. The more financial documentation you archive, the easier in some cases it may be for this information to get lost or stolen. You wouldn’t want, for example, to keep so many years’ worth of data that you have to rent a warehouse in a bad part of town just to store the stuff.
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