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Tuesday, February 3, 2009
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.
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.
Make the following a habit and you might be surprised how quickly little things add up to big tax savings and 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.
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.
Cash receipts should be put in a folder on your desk.
Post these 2 files daily and it should only take you 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.
For your "hard copy" receipts keep monthly envelops to file "posted" receipts in.
That's it! Receipts are posted, filed and will in all probability never be needed again.
Get in the habit of collecting a receipt for everything you do!
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!
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.
Make the following a habit and you might be surprised how quickly little things add up to big tax savings and 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.
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.
Cash receipts should be put in a folder on your desk.
Post these 2 files daily and it should only take you 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.
For your "hard copy" receipts keep monthly envelops to file "posted" receipts in.
That's it! Receipts are posted, filed and will in all probability never be needed again.
Get in the habit of collecting a receipt for everything you do!
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 36 years. Her website: 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 friends that are in business .
posted by Credit Counseling at
2:36 AM
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