“Fiscal Value” refers to the value of a record in providing financial transaction documentation. Records with this value are kept until transactions are completed, and can be archived in hard copy or electronically. Financial documents possess fiscal value until the transaction is complete, and can be archived for future use. Companies retain tax value records until they are audited, and may physically retain them for several years after the audit.
“Fiscal Value” is a term used to identify the value of a record’s value in terms of providing documentation for some type of financial transaction. Generally, records that have this type of value are kept at least until the business or transactions relevant to those documents have been completed. At that point, documents with tax value can be encrypted and archived in hard copy, or archived in an electronic format, allowing them to be easily retrieved in the future if needed.
Determining the tax value of a document generally involves identifying the connection the document has to a given transaction. This makes it possible to determine what, if any, value that document has in terms of providing some form of evidence as to the veracity of the event, as well as providing evidence of certain details related to that event. From this perspective, the fiscal value is also probative in nature, and serves as a basis to justify the chain of events that occur with the event under consideration.
Since fiscal value focuses on the evidence surrounding the conduct of some type of financial transaction, financial documents of many kinds can be said to possess this type of value. Invoices issued to customers fit the broad scope of this definition, as they provide evidence that the transaction occurred and that payment is still pending. The invoice continues to have fiscal value until the point in which the customer’s payment is received and recorded in the accounting records. At that point, the transaction is considered complete and the invoice is now considered of historical value, and can be archived for use in other ways, such as supporting documentation when accounting records for that period are audited.
Many companies recognize that records documenting financial transactions related to an accounting period are of tax value, at least until all relevant accounting documentation and records for that period have been professionally examined and found to be true and complete. Depending on the relevant laws and regulations for business record keeping within a nation, those documents may be physically retained for several years after the audit, making it possible to retrieve them when necessary. By doing so, it is easier to reconstruct the chain of events associated with each transaction and authoritatively respond to any questions or concerns about those transactions.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
