Top Tax Tips 2013

Small Business: Better Tax Record Keeping

Published on Janaury 1, 2013 by: Earl Johnson, CPA

How to Better Organize Your Small Business Tax Deduction Expense Records

As a small business owner, keeping track of your yearly tax deductions can be one of the most unpleasant, cumbersome aspects of running your company. Obviously, it is also one of the most important jobs to keep up with if you want to get back all that you deserve while simultaneously avoiding the dreaded IRS audit. Learning a few tips about small business tax deduction organizing can help you stay on track and be better prepared for your quarterly or Spring tax filing deadline.

Familiarize Yourself With Generally Permissible Business Tax Deductions

Business tax deductions that you are unaware of can literally cost you thousands upon thousands of dollars in unclaimed tax credits each year. You might be aware of some of the partial or fully deductible claimable expenses related to your business. However, it is always a good idea to periodically take some time out to brush up on some common tax credits that you might be missing out on. These include advertising, professional organization dues, equipment rentals, business credit card interest, bad debts and business entertaining. According to Stephen Fishman of Nolo.com, consultant fees, online business computer services, petty cash funds, commissions and business association dues are also commonly overlooked deductions.

Use Smart Phone Apps

A plethora of business tax deduction smart phone apps are available for your smartphone. Travel a lot for business purposes? The Trip Cubby iPhone app allows you to easily input your mileage, log trip data, and mass-edit mileage records at the touch of a button. Have a lot of unrelated business expenses? You might find the free or paid apps for all types of smartphones at Lemon.com handy. This company's software lets you scan business expense data, create reports, track tax deductible data and create different subcategories to help you better organize your small business tax deduction records.

Dedicated Filing Areas

If you do not have a smartphone or are admittedly not up to par with using technology to keep track of things, you are not alone. Many people simply have not adapted to up-to-the minute, hand-held modern device offerings. In this case, it is wise for you to keep a dedicated area in your office for business receipts. Even if it is just a large, fire-safe box that you throw records into once a week, it can be your saving grace when it comes time to file your taxes.