01 Nov How do I track expenses?
You love what you sell, and you live for your job; you are a business owner!
Well as a booming business owner, you didn’t get into your business just to do the tedious parts of the job! While you would rather spend time on growing your customer base and making money, it often pays off to look at the detailed business aspects of your company.
Since we know that your passion lies with your customers and your products, we have one big tip to keep you in the free and clear when it is time for taxes.
KEEP YOUR RECEIPTS AND TRACK YOUR EXPENSES!
According to AllState,
to get credit for your expenses… you must keep good records and be able to prove to the IRS that money you spent running your business was “ordinary and necessary. They say that you should “consider thinking of your record-keeping system as a way to make sure you get all the tax breaks to which you’re entitled, rather than simply an annoyance.
When you stay on top of your business’s accounting and books, you are making it easier for you when tax season comes around; you will thank yourself for it later!
While this tip may seem straightforward and even a little bit obvious to some of you, it is often something that business owners and direct sales consultants skip over nearly every time! Remember that every item on your bank statement should be able to be found on a piece of paper somewhere, make sure there is a paper trail for every expense. Try writing on each receipt or using a sticky note to remember what each receipt and expense was for. By staying organized and keeping track of receipts of all kinds you can save yourself the hassle if and when your company is audited by the IRS.
Keep in mind that it pays to follow the rules and keep track of your receipts and paperwork. There are endless amounts of rules and regulations that a company, LLC or Sole Proprietorship has to face on a daily basis…why not make it a little easier for yourself?
Do you know where your business is heading? To learn more about how we can simplify your accounting process, call us at 727.828.9945 to schedule your free consultation.
About Accounting & Business Partners
Accounting & Business Partners is a CPA firm with an efficient bookkeeping department. We believe that success lies in numbers. However, the drive behind the numbers is what truly matters. That’s why we look beyond the financial statements.