Legal Obligations for Storing Invoices in the USA

In the United States, businesses have legal obligations to maintain accurate financial records, including invoices. Keeping these records is not only a legal requirement, but also essential for maintaining the financial health of a company. This article will provide an overview of the legal obligations for storing invoices in the USA, and how technology solutions like Finui can help simplify the process.

What are Invoices?

An invoice is a document that records a transaction between a seller and a buyer. It includes details such as the date of the transaction, the items purchased, the price, and the payment terms. Invoices are important financial records that are used to track sales and expenses and to calculate taxes owed.

Legal Requirements for Storing Invoices

Under federal law, there is no specific requirement for how long invoices must be kept. However, the IRS recommends that businesses keep invoices for at least three years from the date they were filed or the date the tax return was due, whichever is later. State laws may also have their own requirements for how long invoices must be kept, so it is important to check the specific requirements for each state where the business operates.

In addition to the duration of storage, there are also requirements for how invoices must be stored. Invoices must be kept in a safe and secure location, and they must be easily retrievable for inspection by tax authorities.

Benefits of Storing Invoices Electronically

One of the most effective ways to store invoices is electronically. By using an electronic document management system like Finui, businesses can streamline the invoicing process and simplify their record-keeping obligations. Some benefits of storing invoices electronically include:

• Cost savings: Electronic storage eliminates the need for physical storage space, reducing the costs associated with paper records.
• Time savings: Electronic records can be easily searched and retrieved, saving time and effort compared to searching through paper records.
• Improved accuracy: Electronic records can be easily backed up and secured, reducing the risk of data loss or errors.
• Convenience: Electronic records can be accessed from anywhere with an internet connection, allowing businesses to manage their records from anywhere.

Using Finui for Invoice Management

Finui is a cloud-based software that offers advanced features for invoice management. With Finui, businesses can import invoices from various sources, including email, and automatically extract relevant information using OCR technology. Finui also offers workflow management features, allowing businesses to manage approvals and payments for invoices.

One of the key benefits of using Finui is its archiving capabilities. Finui stores invoices securely for up to 10 years, ensuring that businesses are in compliance with legal requirements. Additionally, even if a business stops using Finui, access to archived invoices is never lost, as login credentials are never disabled.

Conclusion

Invoicing is an essential aspect of running a business, and keeping accurate records is vital for compliance with legal requirements. By using an electronic document management system like Finui, businesses can simplify their invoicing and record-keeping obligations while also enjoying the benefits of cost savings, time savings, improved accuracy, and convenience.

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