Question
I'm starting a small biz. I've started a speadsheet, writing all my expenses and every purchase, now that I'm working for myself.. I'm trying to see where I can write off business expenses, so I'm not taxed for that amount. Can you give any advice? Do I need to keep every receipt? What do I need to do?
I'm starting a small biz. I've started a speadsheet, writing all my expenses and every purchase, now that I'm working for myself.. I'm trying to see where I can write off business expenses, so I'm not taxed for that amount. Can you give any advice? Do I need to keep every receipt? What do I need to do?
Answer
Absoutely keep your recepts in case of an audit. Keep the spreadsheet for easy viewing for you. Office stores sell these collapsable files with the months on them. Get one for every year and stash receipts there for easy storage. Remember, to keep those receipts for 7 years because the IRS can go BACK and audit previous years. But, remember, receipts alone are not enough. Document why you needed something as well in case the IRS questions a purchase, thats where quickbooks or Execel is handy!
Absoutely keep your recepts in case of an audit. Keep the spreadsheet for easy viewing for you. Office stores sell these collapsable files with the months on them. Get one for every year and stash receipts there for easy storage. Remember, to keep those receipts for 7 years because the IRS can go BACK and audit previous years. But, remember, receipts alone are not enough. Document why you needed something as well in case the IRS questions a purchase, thats where quickbooks or Execel is handy!
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