Keeping Track of Allowable Business Expenses and Income
Here are a few tips to keep track of your allowable business expenses and income. By following these tips you may keep your tax preparer happy and possibly cut your tax preparation bill by a few dollars.
During the year you accumulate bills and collect monies for your business. At tax time you need to give this information to your tax preparer.
Total all your income from sales.
- This should be more than the 1099’s you receive in the mail if you’re a service business.
Total your allowable business expenses from doing business.
- Your tax preparer wants totals for each line on the tax return. As a sole proprietor your business is reported on schedule C.
Allowable business expenses include:
Advertising, contract labor and payroll, insurance, interest, legal and professional fees, office supplies, rent, other supplies, bank service charges and credit card deposit fees, repairs and maintenance, taxes and licenses, travel and meals, other.