The Quick And Easy Way To Save Tax Dollars-Only 5 minutes a day
Keeping accurate business records is essential if you want to save tax money and have adequate records in case of, heaven forbid, an audit.
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!
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.
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"
Any cash receipts you may have acquired during the day can be kept in a folder at your desk.
Post these 2 files daily and it should only take you 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"
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.
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.
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.
It's guaranteed regular and consistent record keeping will pay big time at tax time!
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!
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.
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"
Any cash receipts you may have acquired during the day can be kept in a folder at your desk.
Post these 2 files daily and it should only take you 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"
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.
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.
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.
It's guaranteed regular and consistent record keeping will pay big time at tax time!
About the Author:
Karin Russell has owned a home based business specializing in tax preparation for home based businesses for over 3 decades. Her web site: 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 customers.
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