As we get close to the time when corporate taxes need to be filed and other taxes need to be calculated, it seems proper to mention that every year many people forget to not only keep their receipts but also to log all the important information they need so they can get proper write-offs to reduce their tax liabilities. We understand how time consuming it can be, as well as how hectic life can be, so we decided it was time to offer some suggestions on what could be helpful… without advertising anyone or any company in particular.
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Let’s start with cameras. Anyone who has a smartphone these days also has a camera. This means it can be used as a helpful work tool to help record a lot of different types of information that you can use later on to help figure out and track expenses. For instance, it can help you track mileage if you take pictures of your odometer when you start and stop a journey. You can take pictures of meal receipts instead of lugging around a lot of paper. You can probably figure out other ways cameras can help you out, and nothing says you have to save every picture you take. This also allows you to set up a digital file if you’d like to submit your receipts that way; accountants love things like this.
Next, folders. The majority of us pick up receipts, stuff them in our pockets and bags and move on with life. The problem is we get home pull all that paper out of our pockets and put it… somewhere. Later on, we might throw it all away because we forgot what it was or the possible significance of it. We’re not saying to carry folders around with you everywhere you go (although that’s not a bad idea), but it would help if you had a folder or two close to where you put all the paper you pull out so that it’ll spur your mind into thinking about some possible business purchases you might have made.
Back to the smartphone thing. There are a lot of apps out there that can help you track receipts, mileage and expenses. Some are free while some you’ll have to pay for. We haven’t spent a lot of time evaluating these which is one reason we’re not recommending anything, but we have noticed that there seems to be a generational gap as to who likes using these more than tracking information in other ways. Still, it’s something to think about because it might help.
The last thing to talk about is good ol’ reliable paper. One of our clients carries around a 3×5 index card notebook to capture mileage, write down where he’s been when making business purchases and highlight other information in case he forgets to log it all into a calendar. Other people carry steno-type notebooks, full folder folios or planners with them. These are all great… just try to remember not to throw away the pages in case you need to refer back to that information for your end of year expense calculations. 🙂
