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Getting Organized | Tips on keeping track of business receipts

Getting Organized | Tips on keeping track of business receipts Having organized records of purchases is essential to operating a successful business. So before you pull out your hair this tax season, take some time to organize your expenses and follow these quick steps to better track your business receipts. Separate business and pleasure As a small business owner, it is important to have a separate bank account for all business expenses. Do not pay any personal expenses from this account. If you absolutely need money from your business for a personal expense, then we suggest writing yourself a check. Set up a filing system Find a system that works for you. If a small accordion folder separated into the 12 months of a year works for you, then stick to it. The idea is to keep all expenses in one organized location that will be easy to find at a later date. The last thing you want to do is turn your office upside down when you receive a letter from the IRS. Quickly file your receipts We understand that running a small business is hard work and is very time consuming, but it is important to file your business receipts as soon as possible. It’s good to get in the habit of filing your receipts every day, or at least once a week. Don’t just stuff them in your desk drawer and plan to tackle them later. It won’t happen. Provide details Running a small business is stressful, so remembering each purchase is nearly an impossible task. Before you file away each receipt, take the time to staple a small piece of paper and then write down: the date, location, and why you made the purchase. Don’t forget travel When traveling for business, it is easy to loose, misplace, or forget to obtain receipts with your purchases. Thankfully, there are thousands of mobile apps to help you organize any and all business travel expenditures. For those not too tech-savvy, a great method is to keep an envelope system for all travel receipts. Once you return, be sure to file them immediately! Don’t get caught scrambling this tax season and take the time to organize your yearly expenses. Your accountant will thank you. Have you ever experienced a receipt nightmare? Let us know how you resolved it in the comments below.