Are You Staying Compliant with Construction Paperwork Regulations? Get the Facts Today
Unless your construction firm has limitless storage space, you’ve probably thought about how long you need to store various sorts of documents. We can assist you with a variety of construction-related duties, including money control and loan papers, at ECL Software.
Today, we’ll go over some of the specifics, as well as detailed, easy-to-follow guidelines for keeping track of tax records and other project documents. Continue reading to discover more, and then let ECL Software assist your construction firm in completing the task only once.
How long should individual tax returns be kept?
According to some experts, keeping tax papers for an individual return for three years is sufficient. We recommend that individuals err on the side of caution and store their files for six years at ECL Software. It’s important to remember that this includes W-2s, K-1s, 1099s, canceled checks, receipts, or other documentation of deductible spending, as well as bank and brokerage account records.
The least period of time you should keep this information is three years from the day you filed your tax return (or the date it was due, if it was later). However, we feel there is one important element to keep in mind: When income is considerably underestimated but no fraud is detected, the IRS has a six-year time limit to commence an examination. As a result, we feel that keeping these documents for six years is the acceptable length of time.
How long should comprehensive business entities keep documents?
You’ll need a copy of your yearly Form K-1 if you own a subchapter S company, limited partnership, LLP, or LLC for as long as you have a vested interest in the entity, plus seven years after that. Documents relating to the sale or disposal of your interest in that property should be kept for at least seven years from the date of disposition.
We recommend that businesses retain their corporate tax returns for as long as possible.
Construction company retention times
A construction business should also maintain its tax documents for as long as possible. The good news is that cloud computing and data storage allow you to do so without having to give up a whole facility. If your construction firm is ever audited, you’ll want to have this information on hand.
Finally, we get at project records. Change orders, papers, contracts, drawings, field notes, all communication, specifications, schedules, monthly reports, and so on are all included in this category. Everything should be preserved for as long as the state in which the project was completed requires. In fact, we urge that you retain it for at least one year over the minimal required.
If you’re having trouble organizing the numerous papers required to manage a successful construction firm, it’s time to contact ECL Software. We provide one-of-a-kind solutions and ideas to help your organization communicate more effectively and function more efficiently.