As accounting aficionados, there’s one mistake we see all the time with small business owners:
They don’t save copies of their expense reports.
At the end of the day, this may cause a variety of tax, accounting, and cash flow issues.
It may appear difficult to keep a receipt of each purchase your business makes, but there are a few ways to make it easier on yourself.
First, use one single credit card to pay for all business expenses.
Second, have a designated location for all of your receipts to keep them organized.
Third, make sure you categorize your expenses.
Your business expenses could fall into several categories, including:
- Travel expenses: if you ever had to make a business trip, or even if you spend a lot of gas money commuting, you can write it off!
- Home office expenses: whether it’s a computer, a printer, or office supplies — write it off!
- Entertainment and meals: Let’s say you treated a client to an expensive dinner in an attempt to secure a deal — you can write it off as an expense!
- Gifts: If you bought a client tickets to the big game as a token of your appreciation for their business — write it off!
Your expense report can mean the difference between gaining or paying come tax time, especially in the first few years of your business!
So, don’t hesitate to reply to this email or give us a call.
We promise your money will be in good hands ;)
