Keeping track of tax write offs
Know your tax write offs
Before a business person can keep track of their tax write offs, it is essential that they know what expenses are considered tax write offs for their business. Each business is different, so their list of tax write offs will be different as well. A business owner should contact their accountant to find out a list of possible tax write offs for their business. This way they will be able to keep track of the business expenditures that can be used for tax write offs.
Use a calendar
Using a calendar to keep track of the smaller tax write offs is a great idea. Some write offs do not have a receipt, or they do not need a receipt. For example, paying for public transportation or tipping are business tax write offs that will not come with a receipt. A person can keep track of these tax write offs by writing them down on a small calendar that they keep with them. They could also make a note in a phone calendar if they do not carry around a day planner.
Files and folders
A very important aspect of keeping track of business tax write offs is keeping track of the receipts. One of the best ways for a business person to keep track of their receipts is by using folders in some sort of filing system. There are many different types of filing systems that a person can use to keep track of their receipts. For example, there are accordion folders, there are file cabinets, and there are just regular folders that a person can put on a shelf or in a box.
A business person can set up there own system for storing their business receipts for tax purposes. They should label the folders or files and can even divide them by month or quarter to keep things more organized. This way, when it comes time for them to meet with their accountant to do their taxes, they will not be searching for their receipts.
A great way for a person to keep track of their tax write offs is by using technology to their advantage. There are more programs, other than Excel, that can help a person keep track of their business spending and their tax write offs.
Validas Cell Phone Bill Organizer is a great way for a business person to keep track of the business calls they receive on their personal cell phone. Many employers do not pay for their employees' cell phone bills. However, many people receive or make business calls using their cell phone. So using this cell phone bill organizer is a terrific way to help a person keep track of the business calls for tax purposes.
Evernote is another great service that can help a person keep track of their business spending. With this program, a person can add anything they need to to a searchable database. They can add Excel spreadsheets, a picture of a business receipt that they took with their cell phone, etc. Then, when it comes time to get their taxes done, the business person can easily find the information they need for their tax write offs.
Cell phones have more than just calendars now. They even have applications that can help a person track their business spending to help them keep track of their tax write offs. People can include little notes along with the amount that they spent and the date. Using a phone can be a great tool to help someone keep track of their tax write offs.