Top Tips for Managing Business Expenses - One Source Business Connections

    WASHINGTON, PA, February 01, 2015 /24-7PressRelease/ -- Staying on top of your company's accounting tasks is a great way to make sure you're getting every tax benefit possible for your company - and to reduce stress when tax time does come around. We specialize in accounting services that will cover all of that boring stuff for you but we're offering our top tips for doing it yourself should you choose to.

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Good record-keeping benefits you
To get credit for your business expenses you must keep good records and be able to prove to the tax people that the money you spent running your business was 'ordinary and necessary.' You can do that much more easily with organized receipts and accounting records. So, think of your record-keeping system as a way to make sure you get all the tax cuts you're entitled to, rather than simply an annoyance.

Keep business and personal finances separate
Open separate bank accounts and credit/debit cards that you will use solely for handling business expenses. It's much easier to keep track of business receipts if they are all in one place and not mixed up with all your grocery shopping receipts.

Know what's deductible
In general, allowable business expenses include things like: business use of your car and home, supplies, meals and travel (as long as the primary purpose is business), payroll and subcontractors, capital equipment and more. Be careful when deducting things like meals and travel, the primary cause for this action must be business not you went for a meal with or travelled to visit friends and spoke a little bit about business.

Stay on top of paperwork
In order to deduct most expenses; you will need to keep 'adequate records' of the purchases - such as receipts, cancelled checks or bills. Spend a few minutes every day or at the end of the week entering receipts or downloading them from your bank or credit card website into your accounting program. Always assign expenses to categories. At the end of the year you will be able to present this information easily. It is important to keep hold of any business receipts for up to 7 years in case the tax man needs to see them.

Get help when you need it
It can be hard to get your head around everything you need to know. When in doubt hire a pro - a certified public accountant or tax agent. They will stay on top of changes in the law and make sure everything runs smoothly.

If you would like more information on how we can help your business and the accounting services we offer then visit us here: http://onesourcebc.com/

One Source Business Connections provides a range of business services including Accounting, Bookkeeping, background checks and social media management.

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