Documenting Your Business Expenses

Who likes to pay taxes?!? Not me! Businesses are required to keep accurate records to back up any write-offs which can translate into tax saving. In today’s world many transactions are documented electronically, which is fine, as long as you can retrieve them efficiently. Following are a few ways to do that:

  1. Create a folder in your email inbox for business receipts. When you get an email receipt, move it immediately to that folder or print it for your paper files.
  2. Banks typically store statements on their website for two or three years, but they may charge a fee if you need to statements for earlier years. Since, at minimum, the IRS has three years from the date you filed your original return to request documents, you may want to download the bank statements onto your computer to have later.
  3. Keep a calendar, journal or diary to record business appointments, which may help recall related business expenses, such as a coffee or lunch expense.
  4. Keep a mileage journal. TripLog is the app I use and it starts automatically when my car is driven. When I get home, I mark the mileage as personal or business. SO PAINLESS AND EASY!!

Success is in the details! Mind them and your business will thrive.