ReAnn Rothwell’s Money Saving Ideas, Tax & Organizing Tips

Accounting / Bookkeeping By Box  

Definition:  You keep track of your receipts by throwing them into one or two boxes or files for the entire year and expect your tax person to do a really good job figuring out your taxes for you while only charging you a minimal amount.

The biggest problems with this system:

 1) Your tax person does not have the time or work force to go thru every receipt for every client and properly categorize or catch all of your expenses. I do not care who you use and I am certain it will be wrong if you use just a tax service not an accounting firm.

 2) Your tax person will not catch all of your deductions because they are so busy going thru everyone’s boxes!

 3) You are losing money two ways:

                  >You are paying too much to have your taxes done and probably not done

                    as accurately as they could be done

                   > You are missing deductions and so paying too much in taxes. You could

                     be getting a larger refund and a faster refund.

 4)    You have no idea where your business’s profit vs. loss status is until the end of the year.

Some of the other benefits of an organized bookkeeping and paperwork system are:

> Reduced Stress

> Increased Productivity

> More time to do the things you enjoy

> End the search for lost items

> Maximize existing storage space

> Peace of mind