The Quick And Easy Way To Save 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.
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!
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.
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.
One way to make sure you have all the receipts "posted" is to use the following method:
Make a folder on your desktop labeled "Daily Receipts" For anything you purchase online, save a copy of that in your "Daily Receipts" file.
Any cash receipts you may have acquired during the day can be kept in a folder at 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"
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.
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!
Regular and consistent record keeping will pay off for you at tax time guaranteed!
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!
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.
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.
One way to make sure you have all the receipts "posted" is to use the following method:
Make a folder on your desktop labeled "Daily Receipts" For anything you purchase online, save a copy of that in your "Daily Receipts" file.
Any cash receipts you may have acquired during the day can be kept in a folder at 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"
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.
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!
Regular and consistent record keeping will pay off for you at tax time guaranteed!
About the Author:
Karin Russell has owned a small business specializing in tax preparation for home based businesses for 36 years. Her web site: 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 clients.
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