How to Organize Your Bookkeeping For Tax Time

 

Purchase a File Binder

Categorize Sections as follows:

Travel (Flights, etc)
Supplies
Advertising (Facebook Ads, etc)
Business Insurance
Office Expenses
Car Expenses (Repairs, etc)
Utilities (Internet, etc)
Meals and Entertainment
Home Office
Medical Expenses (Health Insurance, etc)
Legal and Professional Fees (Subscriptions, etc)
Other Expenses

This list is not all inclusive.

Although these are all generally tax deductible, there are sometimes exceptions to the rules and your Tax Preparer will be able to tell you the deductions that you are eligible to claim based on your personal situation.

An example of the above condition would be Traveling Expenses. You can deduct Travel Expenses paid or incurred in connection with a temporary work assignment away from home. However, you can’t deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite.

Bookkeeping and Tax Planning is crucial in your Small Business. Make sure to keep up with your budget and expenses to get the most benefit at Tax Time.

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