Why You Really Need to Write It Down: The Importance of Keeping Records for Tax Credits

If you run a business, you know how important it is to save on taxes wherever you can. Tax credits and deductions can help you keep more of your hard-earned money—but only if you have the proof to back it up. That’s where good old-fashioned documentation comes in.

No Records? No Credit.

When it comes to the IRS, your word isn’t enough. You can’t just say “Trust me, I drove 12,000 miles for business last year.” They want to see records. Without them, you risk losing the deduction or credit altogether, and you might even owe extra penalties and interest.

Basically: if you can’t prove it, you don’t get it.

Mileage Logs: The Classic Trap

Mileage is one of the most common deductions people mess up. Why? Because they don’t keep a proper log.

A good mileage log is pretty simple. It should include:

• The date of the trip

• Where you went (start and destination)

• Why you went (it has to be for business!)

• How many miles you drove

You don’t need anything fancy. A notebook in your car or an app on your phone will do. The key is to write it down as you go—not six months later when you’re trying to remember where you went in June.

Don’t Wait Until Tax Season

Good documentation isn’t something you scramble to piece together at tax time. It should be part of your routine. Keeping up with it all year long means:

✅ Less stress when filing

✅ Lower risk of missing out on deductions

✅ Being ready if the IRS asks questions

The Bottom Line

Tax breaks are great, but they come with strings attached. Keeping clear, consistent records isn’t just smart—it’s required. Make it a habit now, and your future self (and your wallet) will thank you.