Painless Way To Save Hundreds of Tax Dollars
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.
Record keeping does not have to take long. In fact you can keep accurate records in just 5 minutes a day.
Recording your expenses in order to take the largest possible deduction on your income tax is not hard or time consuming.
Following good habits like those that follow will reward you in more deductions on your income tax and thus 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.
The following method will make certain that all your receipts have been posted.
For any purchases online save your confirmation of purchase in a folder on your desktop called perhaps "Daily Receipts"
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.
File your online receipts that you have posted in your "Tax Backup Files"
To keep up with your receipts it's easier to file them by month in your "Tax Backup File"
Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your 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!
Did you go get copies that only cost 50, pay cash for them and never post it to your accounting program? If so know that you have just LOST tax dollars. Small amounts do add up over the course of a year!
Save big at tax time by regularly and consistently recording your transactions.
Record keeping does not have to take long. In fact you can keep accurate records in just 5 minutes a day.
Recording your expenses in order to take the largest possible deduction on your income tax is not hard or time consuming.
Following good habits like those that follow will reward you in more deductions on your income tax and thus 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.
The following method will make certain that all your receipts have been posted.
For any purchases online save your confirmation of purchase in a folder on your desktop called perhaps "Daily Receipts"
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.
File your online receipts that you have posted in your "Tax Backup Files"
To keep up with your receipts it's easier to file them by month in your "Tax Backup File"
Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your 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!
Did you go get copies that only cost 50, pay cash for them and never post it to your accounting program? If so know that you have just LOST tax dollars. Small amounts do add up over the course of a year!
Save big at tax time by regularly and consistently recording your transactions.
About the Author:
Karin Russell has owned a small business specializing in tax preparation for home based businesses for 36 years. 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 friends that are in business .
posted by Credit Counseling at
10:04 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home