The BIGGEST mistake you’re probably making in your business record keeping!
These days it gets easier and easier to keep up with transactions but there is one mistake you can’t afford to make in your business record keeping that can cost you THOUSANDS!!!
If you run all of your expenses through a credit or debit card, the transactions on your statements actually can serve as receipts, so it’s not as important to keep ALL of them as it once was before all this amazing technology! But, there is one area that YOU NEED TO keep receipts for.
Expenses for meals & entertainment can be a huge tax deduction AND marketing tool for your business; however, the IRS is a stickler for making sure it is business related. They want to know very specific things for EACH deduction. If you do not keep accurate records for this, they can AND WILL with no questions asked remove them!
So, here is my simple trick!! Keep your receipt and write on the back, who you met & for what reason. They also want to know where & when, but the receipt will say that. Then take a picture of the receipt on your phone and email it to yourself! Create a folder in your email for the current tax year called something like: 2015 Meals & Ent Receipts. And VOILA, you have secured your deduction in an unlikely event of an audit!!! AND the best part is you can throw away the receipt! No more filling a shoe box or folder with messy receipts! Keep them for 7 years like other official tax records!! Now that you have a system in place, you can focus your energy somewhere else!!
Do you need more money saving tax strategies or has your Accountant not offered any? Connect with me today for a free income & tax strategy session!