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Business Tip: Keep good records

784 Views 4 Replies 4 Participants Last post by  MN Gardener
This is one of those obvious things, but it bears repeating. Keep good records!

Keep a record book in your purse and write down EVERY trip that has business related mileage. Even a two mile trip to the post office a couple of times a week adds up.

(Remember that medical miles are deductible on your tax return, too.)

Write down all stamp and postage purchases.

Keep receipts. File them in a SIMPLE, logical manner. I file only about four times a year. Until then, all receipts go in a box. My file system has fewer, but larger categories because I find that I rarely need to actually dig out a receipt. There's no reason to have a hundred file folders when ten will do!

My big categories include:
Homestead receipts
Medical receipts
Office expenses
One folder for each of my rental properties

After the taxes are done, those folders go into a box with the year label, and I make new folders for the new tax year.
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Excellent tip, Rose!!!!!!!!!!!!!!!!

I think, at least for me, learning how to keep good records was a challenge.

Because my business has changed, I keep all my reciepts in two small plastic tote storage thing-a-ma-jigs.

Keeping organized is a key to any successful business.

Thank you so much for a wonderful tip!

Just to state the obvious about saving reciepts:

I always keep the reciept, no matter how small the amount is. I have seen business owners trash any reciept under $20. Those reciepts really add up over a years time!

When you consider if you fall into a 30% tax bracket, $100 worth of reciepts will save you from paying $30 in taxes.

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