Some businesses are learning the hard way that they’re spending more than what they can afford. By getting organized and keeping track of all the expenses can really help keep the company on the right path to staying afloat in this tough economy.
Keeping track of your business expenses is going to come in handy when tax season comes around. Financial expert Armando Montelongo offers advice on how businesses can keep track of their business expenses.
Get an Expense Log
Your local office supply store will carry an expense log book where you are able to keep complete track of the money that’s coming in and going out. Some logs will include sections where you can put your receipts and information on mileage if you’re traveling for business related things.
Write Down Expenses
It’s better to keep track of everything as you go along or at the end of each month. Getting organized and writing down expenses will make tax season go smoother. As you’re spending money to make business related purchases keep track of it in the log. If you’re unable to do this each day, put all your receipts in an accordion file and fill out your log book at the end of the month. Waiting until the last minute isn’t always the best idea.
Using software helps make the process go smoother. The software could make the process even easier for you since all you need to do is type in the information and it’ll do the calculations for you.
Get IRS Information
When it comes to expenses like your mileage and purchases it’s important to check with the IRS to find out how much you’re able to deduct on your taxes. If any information ends up being incorrect you could get audited.