How to Keep Records and Avoid Tax Problems
Small businesses are the backbone of the American economy. They create two out of every three jobs in this country, and they account for more than half of all private sector employees. The IRS knows this, which is why they put such an emphasis on small businesses paying their taxes correctly. One way to make sure you’re doing everything right is to keep good records, including receipts. We will discuss the importance of receipts and 2 1/4″ x 50′ Thermal Paper Rolls for your small business and how to keep track of them!
The first thing to understand is that receipts are not just for tracking expenses. They are also an important part of your tax return. The IRS requires businesses to keep track of their income and expenses in order to determine how much tax they owe. This means that if you don’t have receipts for your business expenses, you could end up paying more taxes than you owe!
Another reason receipts are important is that they can help you avoid audits. The IRS audits less than one percent of all individual tax returns, but they audit around 20 percent of small businesses! One of the main reasons businesses get audited is because they don’t have good records. If you can show the IRS a complete record of your income and expenses, it will go a long way towards avoiding an audit.
So how do you keep track of your receipts? The best way is to use a software program like QuickBooks or Freshbooks. These programs allow you to input your receipts and track your expenses easily. You can also use a simple Excel spreadsheet to track your receipts. Whichever method you choose, just make sure you are consistent in tracking your income and expenses!