The Quick And Easy Way To Save Tax Dollars-Only 5 minutes a day
Organization comes easy to some and hard for others. When it comes to business records you MUST have a system or most assuredly you will lose money when it comes to tax time. And if you are ever audited it is critical that you have the necessary documents to back up your deductions.
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!
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.
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.
If you have paid cash for anything be sure to get a receipt and put it on in a folder of your desk.
Every day (morning or night) post the receipt in the 2 files. Doing this daily takes only 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"
Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your tax information.
After posting your cash receipts place them in an envelop. You should keep each month in a separate envelop.
Unless you have a problem with a bill you will probably never have to look at these receipts again.
Collecting receipts for everything that you do is a good habit to get into!
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.
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!
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.
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.
If you have paid cash for anything be sure to get a receipt and put it on in a folder of your desk.
Every day (morning or night) post the receipt in the 2 files. Doing this daily takes only 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"
Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your tax information.
After posting your cash receipts place them in an envelop. You should keep each month in a separate envelop.
Unless you have a problem with a bill you will probably never have to look at these receipts again.
Collecting receipts for everything that you do is a good habit to get into!
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 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.
posted by Credit Counseling at
7:28 AM
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