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Getting ready for tax time is always a stressful time for business owners and personally as well. While we are not tax advisers, we have lived through many tax seasons and offer up some friendly, yet easy tips that can help you know what you have to keep and organize for your tax preparer so that it may help you be better prepared in the future. Maybe even save you some hard earned money for your business finances or personal finances or at least have less of a headache maybe..
 

Deductions:
you need to save and file the back up for the deductions that you are taking. So if you have receipts for donations, business expenses, medical payments, etc then you should have a copy of check, paid invoice or some type of back up to prove that the deduction is legitimate.
 

Mileage logs are a must. If you are claiming a deduction for work, charity or medical mileage, keep a separate log.
 

Business Expenses
If you have a business at home and have a dedicated office, you need to read the rules for taking the deduction for that on the IRS website. You will need to keep the bills of each area that you are claiming such as electric, gas, phone, internet, etc.
 

Make sure to keep other backup invoices, bills or statements for equipment, supplies and any other business expenditures. Payroll records, income statements and sales receipts if you sell product. Also inventory records are necessary too.
 

Get Organized
The easiest way to be organized is to use software that you can just back up for your tax preparer. If you do yours manually, keeping records monthly is the easiest method to get it done quickly. Envelopes and file folders work great! Your records and detail can be boxed and stored for 4-7 years depending on what it is for. Check the IRS website for their recommendation on that.