The Hidden Cost of Bad Expense Tracking
Expenses are the costs you incur to carry on your business. The either/or dilemma is often between neglecting to record them (easy now) and overpaying taxes (costly later). A Sound expense tracking system is a direct investment in your bottom line.
Record #3: Expenses is critical because you might forget expenses when you prepare your tax return unless you record them when they occur. Your supporting documents prove that the amounts paid were for business expenses. Documents to keep include canceled checks, account statements, invoices, and petty cash slips for small cash payments. Every dollar of proven expenses is a dollar that correctly reduces your taxable income.
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DISCLAIMER: This content is for educational purposes only and should not be considered personalized financial advice. Always consult with a qualified financial professional before making financial decisions.