Have you thought about going paperless in your business? Unless you have a backup and retrieval system for your financial data in place, this may not be a good idea. You'll learn about my experience with the IRS in this podcast and how I avoided paying a $35,000 tax bill by having paper records.
Going paperless is a bad idea for most entrepreneurs. While wanting to save the environment is a noble cause, when it comes to preserving your business records, practicality, logic, and common sense must prevail.
If you're going to go paperless you must have an easily accessible, redundant, multi-level storage system in place that allows you to preserve and access your financial records.
If you are ever the subject of an IRS demand letter you must prove that you do not owe any taxes by providing the relevant documentation. If you can't, be prepared to get your checkbook out.
Even when you file your taxes properly, as I always do, an error in the tax process can create a problem for you. You'll learn about this in the podcast.
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