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Ensuring compliance with New York’s business record laws

On Behalf of | May 30, 2024 | Uncategorized

Maintaining proper business records is crucial for the success of a company. The ability to go over company records to determine what works for an organization and what doesn’t is invaluable when planning for the future.

Business records can help organizations identify high-performing workers and those not pulling their weight within the company. They can help determine whether specific business offerings are cost-effective, profitable or a drain on finances. Proper business records can help companies attract investors or secure financing from banks for upcoming expansions, as they can show how the company has performed historically.

Business records are also necessary for legal compliance and tax purposes. Companies operating in New York may also need assistance to ensure they keep all relevant records to comply with state law.

What does New York require?

The maintenance of proper records is also crucial for legal compliance. Certain basic records, including payroll records, are necessary to maintain for multiple years under federal law. Timeclock and worker tax records should be accessible for at least three years.

New York State imposes multiple types of record-keeping requirements on businesses. Financial records are critical for ensuring compliance with all relevant tax laws. Businesses operating in New York generally need to retain banking information, receipts for company purchases, cash register records, purchase orders and images of canceled checks.

Like employment records, in-depth financial records should remain on file at a company for at least three years. Companies in certain industries hoping to claim certain tax credits may need to retain additional records. The state accepts both physical or paper records and electronic records for key financial documentation.

Ensuring proper compliance with those different regulations can be very challenging for those already overseeing multiple elements of a company’s operations. Many business owners and executives find that having outside support can make all the difference.

An attorney can help ensure that a company’s records comply with state law and can use their prior knowledge of the company’s operations to assist in responding to any controversy that may later arise. Maintaining records in compliance with both federal and state law is crucial for organizational success, as violations could lead to large fines.