Here's A Quick Way To Save 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.
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.
One way to make sure you have all the receipts "posted" is to use the following method:
Make a folder on your desktop labeled "Daily Receipts" For anything you purchase online, save a copy of that in your "Daily Receipts" file.
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"
To keep up with your receipts it's easier to file them by month in your "Tax Backup File"
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.
Getting accustomed to collecting receipts for everything you do will result in higher tax savings.
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!
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.
One way to make sure you have all the receipts "posted" is to use the following method:
Make a folder on your desktop labeled "Daily Receipts" For anything you purchase online, save a copy of that in your "Daily Receipts" file.
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"
To keep up with your receipts it's easier to file them by month in your "Tax Backup File"
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.
Getting accustomed to collecting receipts for everything you do will result in higher tax savings.
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!
About the Author:
Karin Russell has owned a small business specializing in income tax preparation for home based businesses for 36 years. Her website: Home Business Owners-Reap the Rewards offers more income tax hints 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
10:03 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home