Recordkeeping – 4 Little Things That Have a Big Impact For Businesses

What Do You Need to Know About

 

  1. Have a separate business bank account – There are many reasons to do this including ease of record keeping and if you have a separate business entity the IRS and many state laws require it.
  2. Keep good financial records – Your chances for success increase if you have a clear understanding of your financial health. Track you income and expenses in a ledger, programs like Excel or accounting software.
  3. Keep those receipts – Per the IRS, in order to deduct an expense you may need to be able to prove it.   You can do this the old-fashioned shoe box way, or you can store them electronically in a graphic format.
  4. Track your business mileage – This is often overlooked or estimated at the end of the year.   Once again, per the IRS, you need to prove it in order to deduct it.   Keep records of the date, amount of miles and the reason for your business joy-ride. Those business miles can mean more money in your pocket.