Archive for February, 2017

Set Up a Simple System NOW and Deter Headaches Next Tax Season

February 11, 2017

It’s mid-February if you’ve got your taxes completed, you ROCK! You are definitely doing things right. If, however, you find yourself scrambling for receipts, mileage and other information, put together a system NOW in order to avoid headaches and late nights next year:

  • Have your business expense files easy to access so that you file your expenses immediately. This means that your files are not hidden in the back of your file cabinet but are at the front or in a stand up file on your desk. Expandable folders, hanging folders, manila folders are all fine. Use whatever helps you to file right away.
  • Get out of “shoe box syndrome” by categorizing major expenses – separate your business expenses as you file: office supplies, phone, advertising/marketing, dues…
  • Get in the habit of using the “Reconcile” feature and actually balance your checkbook on a monthly basis –catch errors when they happen rather than 6 months later… (or work with a bookkeeper regularly)
  • Run the “canned” reports on spending each month and actually look at your business reports to see where your money is going, looking for anything out of place, odd or unusual (or communicate with your accountant regularly)
  • Track your business mileage as you go rather than try to piece it together after the fact. Include a mileage log in your car, purse, briefcase or wherever you will see it often. A post it on your dashboard can help you to remember. You know there are several APPs for that, I personally use Everlance now, after using MyLog for years.