Record of all sale transactions?

Kbolt

Hiya,

Quick question...

Am I required by law to keep a record of all sales transactions of my business?

About 40% of the business I do is cash. The customer comes in and fills out a form which I keep as a record of their transaction. I just write the customer a receipt on paper when they pay.

The other 60% is merchant services (laser, credit card).

At the end of each day I record the cash transactions and merchant services transactions on a paper and file it away and also enter two numbers into my account program – the cash and laser transactions for that day.

So basically I just want to get rid of all the excess records of the customers and just use the end of day records for bookkeeping etc.

I hope that makes sense Any and all advice is greatly appreciated.

Kindly,
KBolt

dbran

Simple answer is yes.

1) If you are incorporated, you will need to keep details of all the transactions of a company to maintain an audit trail for the annual company audit. By not keeping these records it may mean your accounts are un-auditable. This will in turn mean you are not keeping proper books and records which is a very serious offence under company law.

2) Even if you are not a company, if you have a revenue audit you will basically need to demonstrate that all the income is going through the books. You will have a hard time proving this to them if you actually make a point of destroying the underlying records.

3) In any case, I believe you need keep evidence of transactions for other legal reasons for six years.


That would be my opinion on it.

Hope this helps:)

DB

Kbolt

DB,

Thank you!

KBolt