Question by : How do you prepare your home-based Massage business for tax season?
I’m getting ready to open my home-based business in a couple weeks and I’m looking for advice on how to prepare my receipts for taxes. Because the business name is my name only, I only have to file yearly on my personal taxes. I’ve been told to use manila folders or an accordian file folder to keep things in order. How do you do it?
Answer by J-10
Look into some bookkeeping software, such as QuickBooks, or even basic personal finance software like Microsoft Money or Quicken to track your income and expenses from the business. If you have your taxes prepared by someone else, and you walk in with a folder full of receipts, you’re either going to (a) end up having to summarize everything yourself, or (b), walk out with an inflated bill.
Personal finance software is pretty simple to use, requires no knowledge of accounting (just basic checkbook skills), and will help you generate reports to summarize the activity. You should still keep the receipts as audit proof if selected.
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