7 Ways To Organize Your Business Tax Receipts

7 Ways To Organize Yourself For Taxes Lois Center-Shabazz

Don't let your accountant organize your receipts for taxes. You and only you are responsible to the IRS if your receipts are not categorized correctly. Take your time, lay out your reciepts, and place them in the category you think they belong in. Attach each category to a sheet, list the category at the top of the sheet, list each item on each sheet and why it is deductible.

1. Make two categories--Business and Home

You should have two sheets, one with Business written the top and one with Home written at the top. Place your business file in front of your home file and your personal file in front of your personal file. List all of the categories you can think of and you see on the list of a typical schedule

2. Sub Caterorize your Business and Home Titles

Place several sheets on top of the Business sheet and several on top of the personal sheet. Write down each category that applies to Business and each that applies to Home on each sheet. Take each sheet from your Business category and one from your Home category and place sub-category on them.

3. Your Groups of Receipts

Remove your receipts from your accordian file you have stored all year. Attach the receipts that belong to each Business sheet sub-category, you should have several sheets with Business at the top and the sub-category. Do the same with your Personal deductions.

5. Research Your Deductions

Research and read up at the IRS website to find out any and all possibilities you have for tax deductions. Copy and paste that sheet to sub-category. You can also find potential tax deducations on the actual tax forms provided to you by the IRS, find those on the IRS website at irs.gov.

6. You and your accountant

Make sure your accountant understands what you have done and you understand what he or she has done. Discuss your tax deductions with your accountant. You are ultimatley responsible for everything that goes on your tax forms.

7. The Importance of Honest Tax Preparation

It still amazes me how many business professionals do not understand the importance of honesty in tax preparation. It is very easy to get caught submitting dishonest tax information, and you may not be caught for years to come.

Lois Center-Shabazz is the author of, Let's Get Financial Savvy! and the editor of the personal finance website, www.MsfinancialSavvy.com, Get a free ecouse at, www.msfinancialsavvy.com/register/ecourse7.php