New entrepreneurs juggle a variety of tasks every day. As they grind through their busy schedules, keeping track of receipts may fall onto the back burner. When tax season comes around, these important documents are critical for completing state and federal income returns. To be ready, tax preparation specialists suggest small and medium-sized businesses hang on to the following receipts.
Receipts Small Businesses Should Maintain for Taxes
Office Supplies & Equipment
From printers and fax machines to copy paper and office furniture, receipts should be kept for all office equipment and supply purchases. Besides being prepared if an audit occurs, small business owners can deduct these expenses on their tax returns.
Tax preparation professionals also suggest keeping all receipts related to business travel, including ride-sharing, rental cars, and airline flights. Document the reason for the receipt, including the business event and date.
If your business spent money on print or online ads last year, your tax preparation agent might suggest you keep track of these receipts for deductions. Advertising can also include radio and television commercials as well as vinyl wraps on business vehicles.
File receipts for education and training courses taken by you or your employees. The classes must relate to your business and benefit operations. For instance, employees can earn an IT certificate or take a continuing education class to keep a professional license current.
If you’d like additional guidance regarding what receipts to keep, contact the tax preparation professionals at Tudor Wilson & Associates CPAs in Honolulu, HI. For nearly 20 years, this local agency has provided families and businesses of all sizes with customized services, including tax planning, IRS representation, litigation support, and forensic accounting. Call (808) 592-2000 to schedule a consultation, or visit the website for information on the full suite of services.