News Summary

• In many small businesses, that story can be told only by the owner.
• A company should not depend upon its owner to explain every important action.
• Three components build that narrative: the business plan, the bookkeeping and the corporate records.
• The business plan explains the direction of the company.
• The bookkeeping records what happened.
• The corporate records establish authority, and they can be vital when a transaction is questioned..
• A tax position may be weakened even when the underlying expense or strategy is otherwise permissible because the business never created the records needed to establish its purpose, terms or authorization.