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| Here's A Quick Way To Save Tax Dollars |
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| Written by K. Russell KA Russell |
| Thursday, 15 January 2009 15:18 |
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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! 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! 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. The following method will make certain that all your receipts have been posted. 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. Each night (or morning) post" everything in those two files. This should not take you more than a couple of minutes. Make a file in My Documents called "Tax Back Up Files". File your daily online receipts in this folder. The easiest way to keep your online receipts in order is to put them in a Tax Backup File in files labeled for each month. Back up your "Tax Back Up" folder monthly. Put them on a DVD or CD and file them with your 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. Unless you have a problem with a bill you will probably never have to look at 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. 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 friends that are in business . Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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