Should I be keeping copies of received checks?

[bluenshiny]

I've been taking an accounting class to assist me with running my business. The teacher has said that I should be getting the checks I deposit back from the back, cancelled obviously, so I can keep them as evidence towards my accounting records.

Is this actually something put into practice? I'm not sure how to organize all the checks. Most of my records are on my computer but if I were to print every invoice and attach it to its check, I'd need to make a bit more space for the extra filing cabinets. It would cramp me in my office quite a bit so I don't want to do this unless it's absolutely necessary.

[Freelancier]

Most banks are all electronic at this point and many don't even send you a paper statement, although some will send you an image of your deposits.

You don't need them. I've been at this for years and no one ever asks. If you get audited, you'll have an invoice, you'll have a deposit matching when your accounting software says you received payment. No reason for anyone to look further than that.

[vangogh]

I can't even remember the last time a bank sent me a canceled check. I bet it's been about 20 years. Something tells me your teacher created the course several years ago or prepared it from material written several years ago.

I wouldn't worry about the checks. The digital records you have should be fine.

[bluenshiny]

Yes the material is rather old school.

Thanks for the responses. I thought I was about to face a crisis of paperwork to sort through.