Quick Way To Save Tax Dollars...Less Than 5 Minutes a Day
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.
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!
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"
Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your tax information.
For your "hard copy" receipts keep monthly envelops to file "posted" receipts in.
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.
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!
Record keeping does not have to take long. In fact you can keep accurate records in just 5 minutes a day.
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!
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"
Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your tax information.
For your "hard copy" receipts keep monthly envelops to file "posted" receipts in.
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.
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 home based business specializing in tax preparation for home based businesses for over 3 decades. Her blog: Home Business Owners-Reap the Rewards offers more tax hints 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 .
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