im trying to find a way to keep up with tax dedustions with my new business?

Question

I have recently started my own business and im trying to find the easiest way to keep up wit tax deductions for next year, and how do i do all this???

Answer 1

You need to keep a folder for each of these items and do on a daily basis so you are not scrambling around at the end of the year trying to put it together. You will need an CPA to do your taxes, and the more you have done in the tax preparation, the less your accountant will charge you:

1. list of any and all new equipment copies of invoices
2. list of any new inventory for resale if this applies, and copies of invoices
3. list of all supplies for business ie paper,pen, copy paper etc. with copies of invoices and receipts when purchased
4. list of all mailing and shipping with copies of receipts
5. keep a log of all mileage used for business
6. salary paid to employee/s
7. overhead expenses ie phone, rent, utitlities
8. any meals bought for you and employees while working
9. if you suffer any losses, itemized them and mark out of stock
10. any expenses or licenses you purchase for your business
11. advertisement for your business
12. any maintence of your rental property if applies

Answer 2

Congratulations on becoming your own boss. :) As the owner of a business you must have a specialty or something you are able to offer individuals who can't do it for themselves. Follow that .... you can't do everything, so find someone who keeps up with tax deductions for a living, as their specialty.

Keeping up with tax deductions is a difficult job. Go to www.naea.org and find an Enrolled Agent near you who's specialty is tax. It is their job to know and keep up with tax law changes. Hopefully the EA you find also likes to keep their clients abreast of applicable deductions for their business.

In the meantime, put a large manila envelope or maybe a plastic one (with the velcro closure) inside your vehicle. Whenever you get gas or buy a business item, put the receipt into the envelope. This way you won't loose them and can sort the receipts into their specific categories of expense when you find the time.

Answer 3

It's called a bookkeeping system. You need to keep accurate records of all of your income and expenses along with documentation of those items i.e., receipts.

You can do this manually or using readily available computer software such as Quick Books or Peachtree.

Answer 4

get the computer program quickbooks...it walks you through the process of setting up your company and is very easy to use...even for beginners! Don't put off the process because the task will seem very daunting 5 months down the road!

Answer 5

good luck considering you can't spell deductions