Business Tax Set Up Tips

You can improve office operations by streamlining your business processes.  Whether your business is a sole proprietorship, partnership, or corporation, set up procedures that are easy to follow for you and your employees.  

When traveling, you need to keep all receipts for deductible expenses.  Forms are needed that either total your day's, week's or month's expenses.  Gather your credit card slips, cash register tapes, gas receipts, and canceled checks. You will need to keep receipts for gas, meals and entertainment, supplies, overnight lodging and meeting expenses.

The date, amount, and address are usually already on the receipt.   Then you just have to write your purpose for the meeting, who you met with, and your relationship to that person.  Some documentation is needed to prove that payment for an expense was made and that it was a legitimate business expense.

Remember that gifts are only deductible up to $25 per person per year. If you give more than that to each person, the rest would be an nondeductible expense.

With these processes in place you can save time and money when getting ready for your year end appointment with your tax accountant.  Searching for receipts or trying to organize everything at the end of the year wastes valuable time.  Time that you take to streamline your processes will save you money in the long run.