Painless Way To Save Hundreds of Tax Dollars
Keeping accurate business records is essential if you want to save tax money and have adequate records in case of, heaven forbid, an audit.
5 minutes a day...that's all it takes to save hundreds, perhaps thousands, of tax dollars and put money in YOUR pocket!
Getting the largest possible deductions for your business need not be time consuming or hard.
Following good habits like those that follow will reward you in more deductions on your income tax and thus more money in your pocket!
Even small transactions should be recorded everyday. If you post to your Accounting Software daily you will find that it takes less than 5 minutes a day.
Use the following method you will be assured that all your receipts have been accounted for.
Make a folder on your desktop labeled "Daily Receipts" For anything you purchase online, save a copy of that in your "Daily Receipts" file.
Cash receipts should be put in a folder on your desk.
Every day (morning or night) post the receipt in the 2 files. Doing this daily takes only a couple of minutes.
After posting your receipts for the day file them on your hard drive in a file called "Tax Back Up 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.
Use envelops to keep your "hard copy" receipts in after you have posted them. For ease of retrieval I suggest making monthly envelops.
That's it! Receipts are posted, filed and will in all probability never be needed again.
Get in the habit of collecting a receipt for everything you do!
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.
Regular and consistent record keeping will pay off for you at tax time guaranteed!
5 minutes a day...that's all it takes to save hundreds, perhaps thousands, of tax dollars and put money in YOUR pocket!
Getting the largest possible deductions for your business need not be time consuming or hard.
Following good habits like those that follow will reward you in more deductions on your income tax and thus more money in your pocket!
Even small transactions should be recorded everyday. If you post to your Accounting Software daily you will find that it takes less than 5 minutes a day.
Use the following method you will be assured that all your receipts have been accounted for.
Make a folder on your desktop labeled "Daily Receipts" For anything you purchase online, save a copy of that in your "Daily Receipts" file.
Cash receipts should be put in a folder on your desk.
Every day (morning or night) post the receipt in the 2 files. Doing this daily takes only a couple of minutes.
After posting your receipts for the day file them on your hard drive in a file called "Tax Back Up 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.
Use envelops to keep your "hard copy" receipts in after you have posted them. For ease of retrieval I suggest making monthly envelops.
That's it! Receipts are posted, filed and will in all probability never be needed again.
Get in the habit of collecting a receipt for everything you do!
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.
Regular and consistent record keeping will pay off for you at tax time guaranteed!
About the Author:
Karin Russell has owned a home based business specializing in tax preparation for home based businesses for over 3 decades. Her website: Home Business Owners-Reap the Rewards offers more tax tips 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.
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