What bookkeeping records should businesses keep?

Bookkeeping Records Businesses Should Keep in Connecticut

Maintaining accurate bookkeeping records is essential for Connecticut businesses to ensure smooth operations, tax compliance, and effective financial management. As of 2026, the following records are important to keep:

• Income Records: Keep copies of all sales invoices, receipts, and deposit slips. This helps track revenue and supports tax reporting.
• Expense Records: Retain receipts, bills, and invoices for all business expenses. Proper documentation aids in expense tracking and deduction claims.
• Payroll Records: Maintain detailed payroll documentation including employee hours, wages, tax withholdings, and benefits. This supports payroll tax filings and compliance with Connecticut labor regulations.
• Bank Statements and Reconciliations: Keep monthly bank statements along with reconciliation reports to verify cash flow and detect discrepancies.
• Tax Documents: Store copies of all filed federal, state, and local tax returns, including sales and use tax reports required by the Connecticut Department of Revenue Services.
• Asset Records: Document purchases and depreciation schedules for business assets to manage bookkeeping and tax reporting accurately.
• Contracts and Agreements: Keep copies of leases, vendor contracts, and loan agreements as part of operational recordkeeping.
• Inventory Records: For businesses managing inventory, maintain detailed logs of stock levels, purchases, and sales.

Connecticut businesses should retain these records for at least three to seven years, depending on the type of document and tax requirements. Using bookkeeping software or automation tools can improve record accuracy and simplify compliance.