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Tracking Your Mileage

Learn the keys to good record-keeping to keep your business on course.

This story appears in the December 1996 issue of Business Start-Ups magazine.

In the excitement of starting a business, many entrepreneurs tend to ignore the paperwork. Don't. "Lots of things can happen if you don't keep the right records," says Bruce Goldberg, a partner with the accounting firm of Coopers & Lybrand in Philadelphia, "and none of them are good."

The most ballyhooed reason for record-keeping is the fear of an IRS audit, where you would be asked to substantiate both your income and deductions. But, while less than five percent of sole proprietors are audited, poor records can still put your entire business at risk.

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