April 19, 2019 Here are answers to some common business-related recordkeeping questions. What records should owners keep? Small business owners should choose a recordkeeping system that clearly shows income and expenses. How long should records be kept? The general rule is three years depending on the action, expense and event recorded in the document. How should transactions be recorded? A good recordkeeping system includes a summary of all business transactions. What is the burden of proof? Small business owners must be able to prove expenses to deduct them. How long should employment tax records be kept? Business owners should keep all records of employment taxes for at least four years.