If you want to save money on your taxes it is of the utmost importance that you keep accurate records. And keeping good records will surely help you if you should ever be audited.
Keeping your business records can be accomplished in as little as 5 minutes per day. And what a reward come tax time. You could save hundreds or even thousands of tax dollars and pocket the money instead of giving it to Uncle Sam!
Getting the largest possible deductions for your business need not be time consuming or hard.
Make the following a habit and you might be surprised how quickly little things add up to big tax savings and more money in your pocket!
Every little transaction should be posted in your Accounting Software. Spend just 5 minutes at the close of business everyday (or in the morning if that works for you) post the day's (or previous day's) receipts.
Use the following method you will be assured that all your receipts have been accounted for.
For anything that you buy online and get online receipts (confirmations of purchases) save them to a folder on your desktop labeled something like "Daily Receipts."
Any cash receipts you may have acquired during the day can be kept in a folder at your desk.
Each night (or morning) post" everything in those two files. This should not take you more than a couple of minutes.
File your online receipts that you have posted in your "Tax Backup Files"
The easiest way to keep your online receipts in order is to put them in a Tax Backup File in files labeled for each month.
You will want to back up these files at least monthly on a CD or DVD to keep with your year-end tax information.
After posting your cash receipts place them in an envelop. You should keep each month in a separate envelop.
These receipts will be filed with your year-end tax records. Unless a problem arrives you will probably never have to deal with these receipts again.
Getting accustomed to collecting receipts for everything you do will result in higher tax savings.
By not posting a lot of small receipts you are losing tax dollars. If you go get copies, do you get a receipt even if it's only 50 cents? If you do not and it is not posted in your accounting software then most definitely you are over paying your taxes. Small amounts add up over the course of the year.
It's guaranteed regular and consistent record keeping will pay big time at tax time! - 16732
Keeping your business records can be accomplished in as little as 5 minutes per day. And what a reward come tax time. You could save hundreds or even thousands of tax dollars and pocket the money instead of giving it to Uncle Sam!
Getting the largest possible deductions for your business need not be time consuming or hard.
Make the following a habit and you might be surprised how quickly little things add up to big tax savings and more money in your pocket!
Every little transaction should be posted in your Accounting Software. Spend just 5 minutes at the close of business everyday (or in the morning if that works for you) post the day's (or previous day's) receipts.
Use the following method you will be assured that all your receipts have been accounted for.
For anything that you buy online and get online receipts (confirmations of purchases) save them to a folder on your desktop labeled something like "Daily Receipts."
Any cash receipts you may have acquired during the day can be kept in a folder at your desk.
Each night (or morning) post" everything in those two files. This should not take you more than a couple of minutes.
File your online receipts that you have posted in your "Tax Backup Files"
The easiest way to keep your online receipts in order is to put them in a Tax Backup File in files labeled for each month.
You will want to back up these files at least monthly on a CD or DVD to keep with your year-end tax information.
After posting your cash receipts place them in an envelop. You should keep each month in a separate envelop.
These receipts will be filed with your year-end tax records. Unless a problem arrives you will probably never have to deal with these receipts again.
Getting accustomed to collecting receipts for everything you do will result in higher tax savings.
By not posting a lot of small receipts you are losing tax dollars. If you go get copies, do you get a receipt even if it's only 50 cents? If you do not and it is not posted in your accounting software then most definitely you are over paying your taxes. Small amounts add up over the course of the year.
It's guaranteed regular and consistent record keeping will pay big time at tax time! - 16732
About the Author:
Karin Russell has owned a small business specializing in tax preparation for home based businesses for over 3 decades. Her website: Home Business Owners-Reap the Rewards offers more income tax suggestions for home business owners. She highly recommends the book 'It's How Much You KEEP, That Counts! Not how much you Make' for all her clients.
