Itemize, Itemize, Itemize
Numbers can be overwhelming, especially when it comes down to the details of tax matters. We say start small step by step, topic by topic, department by department. Begin by separating documents and receipts according to each specific area of your business. For example, office Supplies or payroll. Make a folder for each, label it by name, then file in alphabetical order.
Account for All Technology & Software Purchases
Businesses of all sizes need to be updated on their technology, it's a way to run your business smoother and serve your clientele better. Under Section 179 of the tax code, equipment expenses such as computers, printers, and even company vehicles are tax-deductible. These are the items that help your operation succeed. Maximize those investments by deducting everything possible.
Include Office & Staff Expenses
Subscriptions to business-related websites and magazines are fully deductible. Combined with the conference deductions (discussed below), staying informed in your industry is essential to staying on top of the game.
Receipts Are Your Friends
They pile up fast and they're easy to lose but their value is golden when accounting for your spending. Because they are usually itemized, dated and stamped, they’re the fool-proof way to keep track of where your money is going. It's hard to keep track of these pesky little pieces of information and filing can be kind of an ancient practice. Using apps like Expensify and Recieptmate are great for going digital. Also, in case of being audited, these will serve you well.
Team Up With An Expert
Taxes are a complex topic because they are designed to place a carbon mark on your business and its spending. Get someone on board like an accountant, lawyer or consultant that specializes in accounting for all your spending, getting the best bang for your buck and organizing your files efficiently.
As always with finances, especially taxes, it’s important to keep your receipts and details about the reason for purchases. While doing this for every purchase may seem over-the-top, it’s easy once you get into the habit of it. It will also save you a lot of grief if you get audited, and it will help you keep peace of mind that your finances aren’t going to get your business in trouble.
Filing for your business may be a new practice but as long as you stay organized and clear, it'll be a breeze to get through. Have any other questions? Feel free to chat with us, live!
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