Painless Way To Save Hundreds of Tax Dollars
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.
Record keeping does not have to take long. In fact you can keep accurate records in just 5 minutes a day.
Getting the largest possible deductions for your business need not be time consuming or hard.
Little deductions quickly add up to big tax savings. Make it a habit to consistently post your expenses and you will put 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.
One way to make sure you have all the receipts “posted” is to use the following method:
For anything that you buy online and get online receipts (confirmations of purchases) save them to a folder on your desktop labeled something like “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”
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.
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.
Get in the habit of collecting a receipt for everything you do!
Over the year a lot of little deductions can cost you tax dollars! For instance did you go get copies for 50 cents and fail to post it in you accounting program. That’s lost tax dollars!
Regular and consistent record keeping will pay off for you at tax time guaranteed!
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