Believe it or not, tax season is right around the corner and it is time for your books.
Set aside a few hours weekly over the month to catch up before year-end, if you haven’t done so and determine tax savings.
If you aren’t certain where to begin, you can start with the next five simple steps:
1. Determine where your money came from
Collect the sales register customer receipts, statements, and tapes to compute sales for the year. This may help you to record deposits.
Like owner investments and loans you can mis-classify transactions without this information.
Doing this could mean that you’re actually over-taxed on non-income associated deposits.
2. Find out where your money went
Pull out your receipts.
They’ll show debt in addition to expenses and payments for lines of loans and credit.
Any funds used to purchase furniture, equipment, along with other business assets must be included due to the special treatment for depreciation purposes.
3. Print or download bank and credit card statements
You might need all bank credit card and loan statements.
Once you’ve got the statements receipts prepared for processing you need to reconcile them.
You need this info for a numerous reasons. It’ll paint a precise picture of the performance of your company.
Without it, you overlook allowable tax discounts and higher gains.
The cash in your bank account does not always mean that you actually had a high profit.
4. Remember the non-cash items
Other things which you’ll have to track are contributions.
Make certain to locate receipts for your donations that are charitable.
These transactions frequently include items like furniture, equipment, and in-kind services.
5. Find out your mileage costs
You’ll also need a record of car mileage incurred for charitable purposes and over the course of business.
The very best way to monitor mileage is by utilizing a mileage log.
You’ll find one online (try this mileage log app free) or at your local office supply store.
Tax Advice From Tax Professionals
If you decide to get free tax advice for small business in a free tax consultation make a list of your questions beforehand.
Additionally, make sure to have the records above ready during the time of your tax appointment.
Given that you will have an easy process to preparing ahead to tax filing, get started now.
Waiting till the last-minute can be expensive with regards to accounting and tax fees, penalties, and missed tax reductions.
In summary, building a lasting and profitable company with good financial management and keep in mind that bookkeeping is a critical piece of your puzzle.
To receive your FREE FreshBooks software and advice on tax issues and increasing profits, visit FreshBooks Online today.
Benita Tyler, founder of TBS United States, is dedicated to helping small company owners by providing proven financial management strategies that you help them minimize taxes, achieve profit goals, and build wealth (source).
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