Your records should support the income and expenses reported on a return. A bank statement can help prove payment, but additional records may be needed to explain the transaction.

A monthly review can catch duplicates, missing receipts, and personal costs classified as business expenses. Organized books are useful for decisions as well as tax preparation.

Your next steps

• Reconcile accounts regularly.
• Attach invoices or receipts to transactions.
• Review unexplained transfers with your accountant.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.