5 top tips for record-keeping
Who Else Wants To Enjoy 7 TIPS TO HELP WITH BUSINESS ,Who Else Wants To Enjoy 7 TIPS TO HELP WITH BUSINESS ,Whatever kind of business you run, you are required by law to keep financial records. There are also a number of business benefits to be gained from keeping accurate records such as it saves you time and money whenever you need to produce financial reports. It ensures you only pay the tax you owe and helps you keep an eye on financial activities.
Who Else Wants To Enjoy 7 TIPS TO HELP WITH BUSINESS
Who Else Wants To Enjoy 7 TIPS TO HELP WITH BUSINESS ,Spending cash without the proper documentation makes it especially difficult for business owners to keep and maintain proper business financial records. It is easy to forget how and where cash was spent without the proper documentation. It is recommended to use a credit or debit card, or check instead of cash as there is a paper trail to follow and this practice will help to keep track of expenses. When you use cash instead of other methods of payment, you could also potentially be missing out on taking advantage of write-offs, as there is no documented proof. If you need to use cash, pull money out of the ATM and make a note on the receipt as to the purpose of the withdrawal.
n addition to proof of payment (canceled checks, credit card receipts, etc.), you also need invoices, receipts, sales slips, or other written documentation that spells out exactly what you paid for. Deductions that you need to document may include alimony, charitable contributions, mortgage interest, child care expenses, and real estate taxes. If you make payments in cash, get a dated and signed receipt showing the total amount and an itemized description of what was purchased.
Who Else Wants To Enjoy 7 TIPS TO HELP WITH BUSINESS,To prove that you correctly claimed income from investments such as stocks, bonds, and mutual funds, you need to be able to determine your basis and whether you have a gain or loss when you sell. Your records should show the purchase price, sales price, and commissions, dividends received in cash or reinvested, stock splits, load charges, and original issue discount (OID). An Excel spreadsheet is a great way to track this information, but even a statement from your broker or financial advisor or a handwritten schedule will do.