Keeping records for your tax returns is not optional!
The Internal Revenue service does not wholly accept electronic records e.g. accounting software reports, credit card statements and debit card swipes. They are into paper, the old fashioned analog back up.
For those of you deducting expenses:
- Be ready to justify all business expenses as ?Ordinary and Necessary?.
- When you go to the movies write on the stub: who with and/or why. Mark your Netflix statements with reasons for seeing each flick.
- When you eat out write on the receipt: who with and/or why.
- Mileage: [Be sure to note your meetings in your calendar]. The ideal is to notate the mileage on the way and upon the return to any business event, errand, or meeting.
- If you do not like the written page then print [as .pdf or paper] and save your detailed PDA/email program pages regularly. The more notations you make the better. In an audit they randomly coordinate business expense receipts with calendar entries.
- Travel ? Make a short recap:
- date/city/event/#days/meals/lodging/transport/local transport/parking & shuttle