Do you claim AUTOMOBILE EXPENSES?
Make sure you are tracking your mileage. Make note of the your odometer reading at the beginning of the year, then track all your business mileage throughout through the year. Keep a log in your car and record in it every time you get into the car. For the more tech savvy, there are apps for your smart phone that will use the GPS to record this for you. When tax time comes, you will be glad you got into this routine.
Keep all your RECEIPTS
If you have receipts for meals, make sure to take the time to write on the back of the receipt the following two details: a) who you dined with, and b) what business topics were discussed.
Remember to BACK UP YOUR DATA
We suggest using a cloud based back up for your accounting data, or else an external drive or thumb drive that is stored in a fireproof safe. It is very costly to re-create data when a computer breaks down or a data file gets corrupted, so please back up often.
For NEW BUSINESSES
If you’re just starting up, a simple way to begin filing is to use an accordion filing folder with at least 12 pockets for every month. Keep everything in the appropriate month. It’s not complicated, and it may be the answer for those who don’t like to file. Most important to note is to KEEP EVERY RECEIPT.
Try to mix business with pleasure. A seminar attended or a supplier visited can allow you to write off a portion of your trip.