As a sole proprietor in the U.S., is there a good reason to keep copies of the invoices issued to my clients?

I do not personally benefit from invoices after they are paid. But is there any situation, perhaps in an IRS audit, where I would need to prove the validity of income by providing invoices?


It's always beneficial to have detailed business records.

There are any number of reasons where you'd need to prove both the types of services you've rendered and the payment history - you've already noted audits (for IRS taxes).

Other possibilities:

  • Lawsuits
  • Audits by local/state tax authorities
  • Proof of income to for loans
  • Proof of income for sale of your business (to prove client base, income streams, etc.)
  • Business audits
  • Leases (example: some business leases include a charge for percentage of sales)

Whether these records need to be original or electronic might be the topic for another question.

  • Good points. I was under the impression that bank statements would reveal deposits, but that doesn't necessarily prove it as income. – user59742 Oct 21 '17 at 16:54

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