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!
The amount of time it takes to record your expenses if done on a consistent basis is less than 5 minutes a day and is not hard.
Little deductions quickly add up to big tax savings. Make it a habit to consistently post your expenses and you will put money in your pocket!
You need to record EVERY transaction into your Accounting Software. The easiest way to do this is spend 5 minutes every night or morning and "post" the days receipts.
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.
Post these 2 files daily and it should only take you a couple of minutes.
Make a file in My Documents called "Tax Back Up Files". File your daily online receipts in this folder.
To keep up with your receipts it's easier to file them by month in your "Tax Backup File"
Putting a backup on a DVD or CD monthly is a good habit to get into. Keep these backups with your year-end tax records.
For your "hard copy" receipts keep monthly envelops to file "posted" receipts in.
That's it! Receipts are posted, filed and will in all probability never be needed again.
Getting accustomed to collecting receipts for everything you do will result in higher tax savings.
Over the year a lot of little deductions can cost you tax dollars! For instance did you go get copies for 50 cents and fail to post it in you accounting program. That's lost tax dollars!
Regular and consistent record keeping will pay off for you at tax time guaranteed! - 15478
5 minutes a day...that's all it takes to save hundreds, perhaps thousands, of tax dollars and put money in YOUR pocket!
The amount of time it takes to record your expenses if done on a consistent basis is less than 5 minutes a day and is not hard.
Little deductions quickly add up to big tax savings. Make it a habit to consistently post your expenses and you will put money in your pocket!
You need to record EVERY transaction into your Accounting Software. The easiest way to do this is spend 5 minutes every night or morning and "post" the days receipts.
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.
Post these 2 files daily and it should only take you a couple of minutes.
Make a file in My Documents called "Tax Back Up Files". File your daily online receipts in this folder.
To keep up with your receipts it's easier to file them by month in your "Tax Backup File"
Putting a backup on a DVD or CD monthly is a good habit to get into. Keep these backups with your year-end tax records.
For your "hard copy" receipts keep monthly envelops to file "posted" receipts in.
That's it! Receipts are posted, filed and will in all probability never be needed again.
Getting accustomed to collecting receipts for everything you do will result in higher tax savings.
Over the year a lot of little deductions can cost you tax dollars! For instance did you go get copies for 50 cents and fail to post it in you accounting program. That's lost tax dollars!
Regular and consistent record keeping will pay off for you at tax time guaranteed! - 15478
About the Author:
Karin Russell has owned a home based business specializing in income tax preparation for home based businesses for over 3 decades. Her website: Home Business Owners-Reap the Rewards offers more 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 customers.
