Personal taxes are not fun, but business taxes can be even more difficult — especially if you’re not organized. With a little bit of planning and up-front work, you can have a system that works for you for years to come.
Here’s the system I use. It works whether you’re keeping the paper receipts or you’ve gone digital and scan them.
Make folders for the following categories:
Advertising and promotion
Meals and entertainment
Postage and mailing
Legal and professional fees
Licenses and dues
If a receipt has expenses for more than one category, make a copy of the receipt for each category and highlight the information for that category before filing it in the appropriate folder.
And the most important thing is to schedule a regular time to file the receipts!
Do you have a different system that works for you? Send an email to email@example.com and let me know. I’m always looking to improve my systems and practices.