4 Modern Ways To Manage Business Receipts For Tax Time
Tracking receipts and expenses is an important tool to ensure you don't overpay at tax time. But many small businesses have a hard time finding a way to track all the business expenditures they make over the course of a year. In today's busy business world, many of the old ways, like throwing receipts into the proverbial shoebox for your tax preparer, don't work for entrepreneurs.
So, how can you ensure you have the information you need for your tax appointment without overburdening yourself? Here are four things to try.
1. Give Receipts to Your Accountant
Why try to organize, store, and track receipts on your own if you can have a professional do it? Your accountant should be involved in your business bookkeeping more than just once per year at a tax appointment, so letting them manage your expense documentation regularly actually makes their work easier in many ways. They will know how best to organize things, what information is needed, and how to prepare it to make tax filing easier.
2. Upload to Your Software
Many modern accounting software packages offer you the ability to store images and documents with transactions. Find one that gives you this option so you can scan or attach receipts to the entry. Nearly all oversight agencies, including the IRS, generally accept images of receipts or documentation as proof of an expense. And all you will need to do for your taxes is give your accountant access to the software.
3. Scan and Save the Images
Even if you don't yet use professional accounting software, you can upload and save receipts in a cloud storage system yourself. Cloud storage not only keeps an intact version of the receipt without any deterioration (as often happens with paper receipts) but it also stores them safely offsite. Then, give your accountant access to a shared drive so they can work with these images whenever they need to.
4. Go Digital
If paper copies become too disorganized during busy operations, make an effort to go digital as much as possible. Many businesses, including restaurants, services, big box stores, and contractors, can provide everything from estimates to receipts through email, text, or online portals. Use these to skip the paper element entirely. Just be sure you create a digital filing system with your accountant so everything has a home.
Where to Find More Ideas
Want more suggestions for managing all your receipts for tax purposes? Start by meeting with an accounting service in your state today. They will work with you to assess your business size and style so you can find the best method for you.