Happy New Year

Happy New Year

Now that 2009 has gone and 2010 has started, there are a few things you can do to make sure that you keep the records necessary for the 2010. Consider making a New Year's resolution to improve your recordkeeping. The suggestions are a combination for individuals as a small businesses.

#1 - Sales tax deductions - The sales tax deduction can be maximized by taking the actual expenditure versus the amount provided by the IRS. To take the deduction, you should maintain some type of recordkeeping system. The easiest way to do that, would be use envelopes (5 x 7 size or larger) and through all of your receipts for the month in to the envelope and at the end of the month add up all the sales tax on the receipts. Then keep a new envelope for the following month. Then at the end of the year, you simply add up the totals of the 12 envelopes and provide that to your tax preparer.

# 2 - Business deductions - Businesses need to keep their receipts to prove the deductions they claim on their tax return. For a small business, this sometimes can be tougher. Larger companies typically have staff necessary to use a more advance filing system. Basically, the idea is the same as what individuals should use for the sales tax. You can take your receipts and place them in the envelope. But instead of adding up the receipts, you should place a check register for the month and sort the receipts into check number order.

This is just a couple ideas for you.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com.