How long should I keep my invoices?
Best practices for keeping record of your invoices.
It’s a wise idea to keep all of your business documents — receipts, statements, payroll records, and invoices. Keeping your invoices in particular can help balance your budget and manage your accounts payable and receivable functions, as it gives you a clear picture of how much you’ve billed. These tips can help you best manage your records so that you don’t feel overwhelmed by too much paperwork on file.
It’s not just a good idea to keep solid records — the IRS also requires it from you as a business owner. The general rule is to keep your invoices for at least three years. This is the case with most supporting documents as well, including receipts, bank statements, payroll records, and any other documentation that relates to income, deductions, or credits on your tax return.
The burden of proof is on you as a business owner to back up every item you report on your tax return with documentation. When you’re unsure whether to keep a certain document, always err on the side of caution and keep it.
Too much paper?
Recordkeeping is a whole lot less daunting when you can do it online. Electronic invoices and documents save you the burden of keeping paper records safe, secure, and organized. Create digital invoices, store them on your computer, and explore what else you can do with Acrobat Sign.