AccountingBankingTaxes

Simple tip: keep electronic bank statements

This might be the simplest tax tip I ever offer:

Download and securely store copies of all your bank statements for all your accounts.

Very few individuals and businesses actually do this but in the event of a tax  audit, it will save a lot of time and worry. A few other tips along the same line:

  • Don’t assume that the auditor will be willing to work with paper documents.
  • Don’t assume that you will be able to find paper documents when you need them.
  • Don’t assume that you can afford the cost of handling paper documents in a tax audit.
  • Make sure that your accountant has a separate copy of the statements in a secure storage location.
  • Don’t assume that you will be able to get copies from the bank, especially if the bank is involved in a merger or if you switch banks.

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