Maintain records of income, expenses, receipts, bank statements, and any documents supporting deductions or credits claimed.

It’s advisable to keep financial records for at least seven years, as the IRS can audit returns within this period.

The required tax forms depend on your business structure (e.g., sole proprietorship, LLC, corporation). Consult with a tax professional to determine the appropriate forms.

Bookkeeping involves recording daily financial transactions, while accounting encompasses interpreting, classifying, analyzing, reporting, and summarizing financial data.