Record keeping requirements

Record keeping requirements

Good record keeping is an important element of running a successful business. The law requires businesses to keep complete and adequate records for a period of at least five years. In general, records should be kept that provide:

  • The amount of gross receipts and sales from all sources, including barter or exchange transactions.
  • Supporting documentation for all deductions, exemptions, or credits claimed.

Other important records to keep include:

  • Federal income tax returns
  • Washington excise tax returns
  • General and subsidiary ledgers
  • Sales and/or cash receipts journals
  • Sales invoices Purchase/cash disbursement journals
  • Purchase invoices for assets and expense items
  • Financial statements

Reference: WAC 458-20-254