Keep business receipts??

MNGrillGuy

As a business owner do I need to keep the receipts of all my transactions throughout the year??  I have a seperate business checking account and thought maybe this would be "good enough".  Any thoughts? 

SMAX

You sure do. There are many cash receipts that you`ll need to keep and it`s good practice. They all add up as write-offs at the end of the year.

epeters

Yeah, I keep all mine. Tax season is always a blast.I highly recommend getting a pro to do your taxes unless you`re good like that. I can barely do my quartely sales tax, and 99% of my business comes from other staes/countries. Anything over about 5 cents boggles me.LOL!

MNGrillGuy

Thanks guys.  Sounds like I have another new years resolution. 

epeters

I even keep gas receipts for going to the store to get ink for my printer. Did you know that you can write off a lot of your automobile expenses if you advertise on your car? Here`s my way to do it. I went to Office Max and got one of those DIY magnetic thingies for the door of my truck. Ta da! It`s now a business vehicle. Slap `er on there and you`re all set. Plus you can take it off easily. Much better that getting vinyl all over your vehicle. Get the details from your tax person though. I`m no pro.

epeters

If you have a home based business keep your receipts for mortgage payments, heating, phone, internet, fax,  etc... you can write stuff off from that too.

SettingtheStage

Check with an Accountant or CPA  but I don`t think you have to have receipts for things that are under $25.00 but I keep all business receipts...period!  If you are having lunch, coffee, dinner, etc with a client be sure to write a note on the receipt who the client is.  My CPA says the IRS is beginning to frown on these kinds of expenses.  There are TONS of expenses that can be legitimately deducted from your business.  Paying a good CPA is worth every penny.

epeters

I read something that said having a home based business is about the best/only tax break left in New York. LOL! I live in New York and the taxes are reeeeediculous! Makes me wish I owned an H & R Block, I know they used to get a good chunk of my returns.

SettingtheStage

My CPA told me to get a creditcard that I use only for business and charge everything on it.  I pay it in full every month.  Then when the bill comes in, I just match receipts to it and mark on the bill  what it`s for and the bill itself goes to my CPA every quarter and I file my receipts.  It`s the easiest way to keep track of things and my CPA doesn`t get over run with paperwork.  He charges anywhere from $175. to $225. a qtr. depending on how much there is to do and about $600. to do both my business and personal taxes at year end.  Also don`t forget to write down your mileage at the beginning of the year and keep track of all miles you drive for your business.  I do very little with cash so I don`t have that headache to keep track of.  Also you business filing has to be filed in March, not April.

epeters

That`s a really good idea, about the credit card thing I mean. I`ll have to remember that. I think this is a great topic.

anika143

And if you have staff /others who run errands/pick up supplies/go to the
post office, use your credit card to get THEM employee cards. Beats using
YOUR card, forking over cash or trying to reconcile a petty cash drawer
stuffed with small receipts. So not only can you track any expenses on your
own business card, you can also track them on the employee cards that have
limits you can set right away. SOme credit cards also offer purchase checks
that work like a credit card purchase and let you track even those expenses
that normally don`t take a credit card (like small suppliers).

Because--there is no such thing as "petty" cash!!!

Butterbug

Thanks so much ya`ll for the information! This has really helped me!

Bree

Hi there,
It is important to keep all your receipts that your business had paid for and the receipts you personally paid that was for business as well.  The credit card advise is great!  Thats if you are able to get a credit card. No matter what you do these receipts are highly important supporting your activity in your business.  If youre a sole proprietor yep they are a deductible on your gross income.  However it is wise if you could restructure your business as a corporation to avoid your personal assets being at risk.
Bree

TaLisadesigns

As a business owner do I need to keep the receipts of all my transactions throughout the year??  I have a seperate business checking account and thought maybe this would be "good enough".  Any thoughts? 
I bought myself a flashdrive and created folders for each quarter of the yar: 1st Qrt, 2nd Qtr, etc. I scan all my receipts and put them in the folders accordingly that way it case something happens I still have copies of the receipts. I figured it would make things more simple and easy when tax time comes. Instead of going to the tax preparer with a box full of receipts I can go with a flash drive.