The Importance of Record Keeping

When I talk to our tax preparers here at Rhodes Murphy record keeping is commonly mentioned as one of the biggest pitfalls their clients face. Many things require good record keeping such as business use of home, charitable donations, medical receipts, and childcare expenses. Just because it’s not “tax time” doesn’t mean that you shouldn’t be keeping these records together so that when the time does roll around you are ready to go. If you question whether records should be kept regarding a certain scenario it is better to file it away just in case…you can always throw them away if you DON’T need them but you will have them handy if you DO.