Good record keeping is essential, especially when you operate a small business. Did you know that if you are audited, you are assumed guilty until proven innocent? The IRS assumes that people will cheat on their taxes, until you, the small business owner, can prove to them otherwise. So here is a list of how long you should keep various records:

Keep Permanently:

• Business Licenses
• Fixed Asset Records
• Real Estate Purchases
• Construction and/or Leasehold Improvements
• Patents/Trademarks/Copyrights
• Leases/Mortgages
• Stock Transactions
• Annual Financial Statements
• Depreciation Schedules
• Tax Returns
• Audit Reports

Keep all other records for 7 years, except employment applications, which can be kept for only 3 years. These other records should include things such as:

• Employee files (even if they have quit)
• Payroll Records, including Payroll Taxes
• Accounts Payable Records (Bills you pay, including check stubs)
• Accounts Receivable Records (Invoices you send to others and their payments)
• Inventory Records
• Loan payment schedules
• Bank Statements and cancelled checks

For more information visit:

http://www.irs.gov/businesses/small/article/0,,id=98513,00.html

Hidden Treasures: Heaven’s Astonishing Help with Your Money Matters
Hidden Treasures, by Leslie Householder, is a fantastic book when you are ready to live your life on your own terms. She expounds on the law of attraction discussed in The Secret. Many people start visualizing what they want, but they don’t understand the rest of the process. A friend of mine, Denise Webster, likens The Secret to an appetizer, while Hidden Treasures is the soup and salad. After I explore the “meat” of the process with Leslie Householder, I’m sure you’ll read about it in my blog.

Leslie’s book has really helped me get my business on track as I  have discovered how much my state of mind affects my actions.