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It's Tax Time–Do You Know Where Your Receipts Are?
Guest Blog (Video), Kacy Paide

The dreaded tax time is upon us! There's less than a month to file your taxes in the U.S. Have you started going through your receipts yet? Whether you do your own book keeping for your business or not (I really hope you are at least using an accountant to do your taxes if you are a business owner), having your receipts of expenses and income organized to easily find, review and record them is a MUST MUST MUST!

Today's blog includes a video by a friend and professional organizer, Kacy Paide, showing ways to organize your receipts for this year–and beyond– to make tax time a little bit less painful!

[youtube]http://youtu.be/XKnCq3m3jio[/youtube]

Summary

Regardless of how to you've been collecting your receipts over the past year, it's time to put them in folders AND create folders for 2012 so that a year form now you're not in the same predicament. 

You may choose to create one or all of the following folders. 

*Remember, financial folders must have a year on the label (ie: 2012 Biz Receipts)*  During this process you may be simultaneously filling both 2011 and 2012 folders.

Here are some ideas to get you started:
– Business/Deductible Receipts
– Personal Receipts (Non-deductible, if you really insist on keeping some of these).
– Receipts To Scan
– Scanned Receipts
– IRS/Taxes
– Donations/Charities

Kacy's Challenge to You

Regardless of how you've been collecting receipts (does scattered on the countertop count?), it's time to step it up so you're not giving your accountant the dreaded shoebox or bag of completely unfiltered receipts.  Create one or more folders from the list above and go on a hunt for these little pieces of paper that will save you money on tax day!

Kacy Paide, Office Organizing Expert, transforms messy offices into creative work-havens.  She works best with creative entrepreneurs who hate filing and are out-of-sight-out-of-mind. To get your FREE list of "100 Ways To Organize Your Office" and to receive her weekly articles on creative ways to organize and inspire your office, visit www.theinspiredoffice.com.

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Do you need help getting ideal clients and making more money with less effort and more fun?  Schedule a complimentary MMM Strategy Session with me to identify which of the three keys of creating a successful business you are missing–Marketing, Mindset or Manifesting principles–and IMMEDIATE steps to take so you can get more clients and make a difference in more lives!

Your partner in success,

Lisa Smith
Marketing, Mindset & Manifesting Coach
www.MarketingMindsetAndManifesting.com

Comments

  1. Bob Wager says:

    Lisa,
    Good information on getting receipts organized; it definitely helps tax accountants such as myself if the client comes prepared! However I would like to point out that for your Business Returns, unless you are a Sole Proprieter, filing a schedule "C", Business returns were due the 15th of March!
    This includes LLCs, LLPs, C-corps and Partnerships. Even if you are set up as a "pass-through" entity, and pay no taxes at the corporate level, the IRS will assess a late fee of $89 a month, per corporate member, for every month you are late filing unless you have filed a Form 7004, Extension to File PRIOR to the Due Date.
    I know I have had several new LLC owners be surprised when they realized that the business returns are due before the personal returns.
    If you are working with a good Accountant, they should have taken care of that for you. If they didn't, or you do not currently have an Accountant, feel free to contact me at 407-2954 and I will help you out!
    Thanks!
    Bob Wager
    M42 Enterprises, LLC
     
     

    • Lisa Smith says:

      Thanks for the helpful info., Bob.
      I am an LLC, but I always file by April 15. Yes, I have an accountant do it for me. That’s when she said they are due (been with her for 4 years). I have never been assessed a late fee or told by IRS to do it differently.
      I also recently learned, through some problems I had with my merchant provider in matching my tax ID # and business name with what the IRS has recorded for me, that the IRS does not recognize LLCs separate from my personal taxes, so they were not matching up. Once they registered my business with the merchant provider’s accounts under my personal name and SSN, the IRS accepted it.
      I’ll have this discussion again with my accountant.
      Our government doesn’t make things easy!
      Lisa

      • You need a mileage log so you can document business vs. personal miles (preferably odometer readings). Commuting miles are not deductible. Gas receipts alone don't tell whether the fuel was used for business.Typically you would either figure all vehicle expenses including fuel, maintenance, depreciation, or the standard mileage rate (much easier). But for either, you need personal/business mileage logs.

        • Lisa Smith says:

          Thank you for your helpful information.

          • If you are itemizing, you have the otiopn of claiming the sales tax paid through the year or state income tax witheld from your w2. For most people, claiming the state income tax is usually higher/better. But if you live in one of the states that does not have income tax, you could benefit from the sales tax deduction.Hope this helpsSumit

          • Thanks for that helpful tip, Sonia.

        • Call around to samller type accounting services instead of chain services. Many samller accounting companies use quickbooks as their software. They can input your information or transfer your files to their computer and also generate your tax return.When you call the local companies ask them if they use quickbooks.If your Quickbooks software is set up correctly for your business, your year end taxes are actuall a breeze.

  2. Great Site, Thx! Keep up the good work.

  3. Keeping a mileage log is not hard. A cheap noapetd and a pen are all you need. Just keep it in the car and write down the odometer reading and purpose of the trip every time you drive. You can even mount the pad on the dash if you want.Without the mileage log, you can take the deduction even with receipts. The log is the only record of personal vs business use. Was this answer helpful?

    • Lisa Smith says:

      Yes, that was helpful. Thanks for sharing, Nahum.

      • Look for someone who is an ABA (an aictedcred business accountant) they specialize in small business accounting as opposed to CPA’s who are trained to do accounting for larger public companies. If they are also an enrolled agent with the IRS, then they are qualified in both accounting and taxes.Ask other business owners in your area. The best accountants are probably so busy from referrals that they don’t advertise very much

    • If you itemize (schedule A) you have a chcioe of deducting state and local income tax, or sales tax. If you choose sales tax, there is a table for your state, by income range by family size, that you can use, or you can deduct actual amounts that you have the receipts for. If you use the table, you can add to that amount the sales tax you paid on a car, plane or boat.

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