Having organized and keeping track records of purchases is essential to operating a small business. So before you pull out your hair this tax season, take some time to organize your expenses and follow these quick steps to track better your business receipts.
STEP 1: Gather all your receipts.
This is the most tedious part of the process and requires a good deal of time and patience. Look for all your loose receipts. Check your car, purse, wallet, or other places you stash a receipt.
STEP 2: Separate business and pleasure.
It is important to have an independent bank account for all expenses of activity. Do not pay any personal expenses from this account. If you need money from your company for personal expense, then I suggest yourself a check.
STEP 3: Set up a filing system.
Discover a system that works for you. If a little accordion organizer isolated into the 12 months of a year lives up to expectations for you, then stick to it. The thought is to keep all costs in one easy area that will be anything but difficult to discover at a later date.