Small business owners are often tempted to revert to their old ways after tax season, despite having suffered through the mad scramble to clean up their record-keeping processes to file.
The thinking is: “I have another 12 months before I need to look for anything again.” Needless to say, that’s not the right attitude. Worse still is how most small business owners and managers are not exactly savvy about national record-keeping requirements.
A recent TSheets survey shows the average business owner scored a paltry 24 percent on a quiz about essential record keeping.
Other stats revealed:
- 8 percent know how long personnel and employment records should be kept.
- 13 percent know how long employment tax records should be kept.
- 16 percent know how long employee timesheets should be kept.
- 22 percent know how long income tax returns should be kept.
Make it Personal
While the survey data revealed how little small business owners know about record keeping, the tune changes once the benefit or disadvantage becomes personal. In the questions where the employers scored better:
- 34 percent know what’s not required in employment tax records.
- 36 percent know how long Family Leave Act records need to be kept.
- 39 percent know how long employee illness and injury records need to be kept.
About Melissa Diaz
Melissa is the shareholder and financial and GAAP accounting guru at High Rock Accounting, where she specializes in the healthcare industry and assists clients with GAAP compliance, financial modeling, financial reporting, and general financial accounting inquiries.