Do you keep all your receipts with you? You sure do need to be told the effects of not doing this, right? All the great business leaders out there do it really well so that their audit does not mess up. Keeping your receipts organized is just part of the tax preparation in Kissimmee. So how do you accomplish this? The following guidelines can help you out.
Keep a record of all your receipts
This point is the most important one and cannot be emphasized enough; it is just way too important. This would help you in keeping a proper record and you would have to face less difficulties during the audit. There have actually been times that IRS agents ask for every piece of receipt as evidence of all the purchases that you made. What if you do not have them? Yes, you are going to be in big trouble, and storing your receipts may seem tiring and annoying but is still better than what the IRS people can do to you.
Note down the business purposes on all the receipts
Our tax preparation Kissimmee experts have always advised for some expenses such as office supplies, there is no really need for you to note down the purpose because it is fairly obvious. For all others, especially those related to entertainment and dining, be sure to jot it down on the receipt itself. Should there be any need, you would clearly be able to explain that the expense was indeed business related. And considering all the receipts that can accumulate in your cabinet, noting down the purpose is still a smart option. A few months from now, and you yourself would not be able to remember, forget explaining to the IRS.
Keep a soft copy of all receipts
The IRS is indeed unpredictable because even after six years, they may decide to hold an audit. Just to be on the safe side, scan all your receipts and do not have just one copy, but two or three. What if your hard drive gets damaged or something? The IRS has never been lenient with excuses and they never will be. Have multiple backups for every file.
Got a camera on your phone, right? Put it to good use and take a picture of every receipt as soon as you get it. Try this idea out, and you would love the benefits that you can enjoy particularly if you download a good app. No matter what OS you have, you would have plenty of tracking expenses apps. The process is made simpler while you create an additional backup copy for yourself.
Maintain a business journal
Considering your tight schedules, this may seem in appropriate, but it is not. Doing this makes it easier to keep a track of your deductions and expenses, and the IRS have even asked for it at times.
Indeed it can be quite tedious to follow the guidelines above, at times. But despite all this you would still have to do this because organizing your receipts can make your tax preparation in Kissimmee a whole lot easier.
If you need more information about our, Kissimmee accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.