Your E-Business – The 3 R’s – Receipts, Records, Repeat

If this is your first foray into the world of small business ownership, you need to recognize something right away: keep all receipts and keep records of all transactions. Thank goodness for the end of the year, tax time.

How little income he’s racked up in a year.

You’d be surprised how little income he’s racked up in a year. And each of them is a potential tax credit at the end of the year during tax season. Many people throw away a lot of receipts, thinking it’s not enough to worry about. But trust me. If you have a profitable year, your tax liability can be quite high. And you will remember the receipt you threw away. In addition to keeping all receipts, you must have some form of record of all those expenses.

Having a box full of receipts at the end of the year

There’s nothing worse than having a box full of receipts at the end of the year and not knowing what half of them were used for. And with today’s computerized receipts, most of the time the receipt doesn’t always have a clear description of exactly what you bought. One of the easiest ways to keep track is to write your receipt as soon as you receive it. Write down what you bought and why you bought it. I can’t count the number of times I’ve thrown a receipt in my pocket or stuck it in my back pocket. Go home and toss it on your desk or inbox for later archiving. And at the end of the month you pick up that receipt and say, “What the hell was that?”

Each receipt is a potential tax credit

Repeat over and over again each time you receive it. Each receipt is a potential tax credit. It can be of any shape or shape as long as it is purchased for business use. A new business creates a large number of new prints. Internet connection charges are also deductible. So keep all these receipts and somehow record what they were used for and repeat this for each receipt you receive.

have been working and playing on the web since back in 1995 with my first computer, a Compaq 386, with the “lightning fast” 56k modem, that new fangled windows 95 OS, and my massive 40MB hard drive and omg 16MB of RAM! …..my how times have changed.

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