The importance of keeping adequate records cannot be stressed too much. Without records, you cannot see how well your business is doing and where it is going. At a minimum, records are needed to substantiate:

1. Your tax returns under Federal and State laws, including income tax and Social Security laws;

2. Your request for credit from vendors or a loan from a bank;

3. Your claims about the business, should you wish to sell it.

But most important, you need them to run your business successfully and to increase your profits.