As a business owner, you realize that when you file taxes, having all of your receipts from the following year is essential. However, you might not be so great at keeping your receipts organized throughout the year. To get your receipts ready to file taxes, at Cathy E. Parker, E.A. Bookkeeping & Tax Service, we recommend:
» Saving all of your receipts – Although this may seem obvious, keeping all of your business’ receipts is essential. If your business were to get audited by the IRS, having all of your receipts on file can provide your operations with protection.
»Putting notes on your receipts – Have you ever gotten back to the office from a business lunch, put the receipt in your files, and forgotten where the receipt came from later on? To ensure that you’re able to categorize your receipts correctly, make small notes on them after you complete a purchase.
»Scanning your receipts – Even after you file taxes, you shouldn’t throw away all of your receipts from the prior year. Instead, you should scan them and save them for your business’ records. However, if you decide to store your receipts electronically, make sure you back these files up, so you don’t accidentally lose them if your computer system fails.
Additionally, if you want to keep good track of your business’ expenses, try to avoid using cash. Instead, use your business’ debit and credit records when you make a purchase so that you can always obtain a receipt as evidence.