How To Save Tax Dollars…In Less Than 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.
5 minutes a day…that’s all it takes to save hundreds, perhaps thousands, of tax dollars and put money in YOUR pocket!
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!
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.
Use the following method you will be assured that all your receipts have been accounted for.
For any purchases online save your confirmation of purchase in a folder on your desktop called perhaps “Daily Receipts”
Cash receipts should be put in a folder on your desk.
Each night (or morning) post” everything in those two files. This should not take you more than 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”
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.
Unless you have a problem with a bill you will probably never have to look at these receipts 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!
Save big at tax time by regularly and consistently recording your transactions.
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Tagged with: business deductions • business write off • deductions taxes • home business • home business tax deductions • home office taxes • personal finance • tax savings • Work At Home
Filed under: Work At Home
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