Posts Tagged ‘Expense Receipts’

Expense Receipts

  From day one, try to get in the habit of saving all your receipts.  You will need these to calculate your profit, and for filing Income tax.

 Save receipts from anything business related, (your tax preparer will tell you which expenses cannot be used in your line of business).

  Some suggestions:  office expenses, printing (business cards, flyers, posters, post cards, etc.), postage, equipment, phone bills, utility bills, internet fees, demo products, samples, display items, gifts to clients or helpers, lunch with clients, gas and vehicle maintainace, accounting and tax preparation fees, charities, open house supplies/refreshments.  Save everything that you think may be deducted, you can sort them later when preparing taxes. Clothes are not normally a legitimate deduction, unless they are a required uniform.  If you are lucky enough to have an accountant, they can tell you what to legally deduct. 

  If you log expenses using a spreadsheet, keep the actual paper receipts for proof in case of an audit.