Keeping accurate business records is essential if you want to save tax money and have adequate records in case of, heaven forbid, an audit.

5 minutes a day…that’s all it takes to save hundreds, perhaps thousands, of tax dollars and put money in YOUR pocket!

Recording your expenses in order to take the largest possible deduction on your income tax is not hard or time consuming.

Make the following a habit and you might be surprised how quickly little things add up to big tax savings and more money in your pocket!

You need to record EVERY transaction into your Accounting Software. The easiest way to do this is spend 5 minutes every night or morning and “post” the days receipts.

Use the following method you will be assured that all your receipts have been accounted for.

For anything that you buy online and get online receipts (confirmations of purchases) save them to a folder on your desktop labeled something like “Daily Receipts.”

If you have paid cash for anything be sure to get a receipt and put it on in a folder of your desk.

Post these 2 files daily and it should only take you a couple of minutes.

File your online receipts that you have posted in your “Tax Backup Files”

Keeping your receipts by month in your “Tax Backup File” will make them easier to access.

Back up your “Tax Back Up” folder monthly. Put them on a DVD or CD and file them with your tax information.

Use envelops to keep your “hard copy” receipts in after you have posted them. For ease of retrieval I suggest making monthly envelops.

These receipts will be filed with your year-end tax records. Unless a problem arrives you will probably never have to deal with these receipts again.

Getting accustomed to collecting receipts for everything you do will result in higher tax savings.

Did you go get copies that only cost 50, pay cash for them and never post it to your accounting program? If so know that you have just LOST tax dollars. Small amounts do add up over the course of a year!

Save big at tax time by regularly and consistently recording your transactions.