With the filing of 2009 taxes behind you, it’s not too early to start thinking ahead to next year. Here are a few organization tips to make the tax filing process easier and faster for small business owners:
1. Keep receipts and records throughout the year in one place. Implement a system to capture all relevant receipts and data to help ensure an accurate return and make completing it much simpler. Keep this information handy in an accordion file folder or cabinet where you can easily find it.
2. If you use your car for business use, keep a mileage log as you go.
3. Consider obtaining a separate credit card just for business use, to separate personal and business receipts.
4. Get in the habit of jotting a short note on the back of each receipt for business usage, so that you won’t have to strain your memory to reconstruct the entire year when completing your tax return.
5. Store legal documents and correspondence (articles of incorporation, IRS documents, tax forms, business permits, etc.) together.
6. Purchase a low-cost document management software system to store tax information online for compliance. Remember to back up your data and secure it.
Whether you plan to file tax returns yourself or enlist the help of a tax professional, these tips can help minimize stress, save time, and help you to stay organized for next year.
Vice-President, Small Business Services
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