Tax Season and your Business

“Be STRESS-FREE When Your Business Needs Are Met and Completed”

Have a System in Place For Your Office

There will always come a time when you may ask yourself ” why wasn’t I more organized!”

When you’re running a business, it’s tempting to overlook the importance of keeping receipts and financial documents. Staying on top of your record keeping is vital for filing tax returns and being able to prove they are correct in the event of a tax audit.

Well-organized records can help you track the progress of your business and prepare accurate financial statements.

Having the right system designed for your business will help element tension,stress and frustration. When your office is running smoothly you will be more efficient, productive and less time sitting behind a desk.

“Tips to Help Your Business Records Stay Organized”

Arrange your receipts accordingly is the first step in organizing what will probably amount to a small pile of records.
It is important not discard your records after a year or two. The IRS advises businesses to keep records for up to seven years, or more in some cases.

Gross receipts: These reflect your business’ income, on which its taxes are based. Save documents that show the amounts and the sources of the income.

Purchases: Items you buy and resell to customers; can include raw materials or components that are included in finished products. Such purchases may be considered part of the cost of goods sold, and be eligible for a tax deduction.

Expenses: Expenses are the costs of running a business, from salaries to rent to travel, and most are tax deductible. In addition to records such as canceled checks and account statements, use petty cash slips or a petty cash log to record your small purchases.

Employment Records: It’s important to keep complete records of the wages, benefits and tips that have been paid to your employees with amounts and dates. Keep the names, addresses and Social Security numbers of your employees, and their dates of employment. Hold on to employee copies of W-2 Forms that have been undeliverable and keep copies of employees’ income tax withholding allowance certificates.

Business Assets: Be sure to keep records of the cost of the asset and the sales tax, as well as costs for delivery, setup, training. When assets are sold, keep a description of the item, the price and date of sale, and any expenses pertaining to the sale-such as brokerage fees or advertising costs.

Travel: Keep records each time you make a payment-large or small-that involves a trip. Receipts for transportation, meals and lodging are a must. Keep a journal listing travel dates and destination and the reasons for the travel with a list of expenditures.

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