I today's presentation we are going to take a look to one of the most dreaded parts of preparing your taxes, Recordkeeping. So let's get started!

1. Record keeping
for your business
Essential things you
need to know

2. finding
all the necessary
paperwork,like receipts,
purchase dates, and
mileage expenses

3. finding
all the necessary
paperwork,like receipts,
purchase dates, and
mileage expenses
May be one of the most dreaded
parts of preparing your taxes.

4. What records do you
need to keep?
and how long should
they be kept?

5. You should retain any
pertinent information that is
documented on your tax
return.

6. You should retain any
pertinent information that is
documented on your tax
return.
For example if you claim
mileage, you should always
maintain mileage records.

7. If you depreciate items,
you must retain all
records during the
depreciation period - which
can range from 3 to 39
years.

8. If you depreciate items,
you must retain all
records during the
depreciation period - which
can range from 3 to 39
years.
Most other documents need
to be kept for 3 years from
the due date of the tax
return.

9. Main items that need
detailed records

10. Car Expenses
You should
always keep
track of your
mileage.
Start today, if you are not already doing so, and
write down your business mileage on a daily
basis.

11. You can deduct any business
meetings, deliveries, or any
other work-related mileage.

12. Standard
Mileage Rate
This is the easier of the two
methods to figure car expenses.

13. Standard
Mileage Rate
This is the easier of the two
methods to figure car expenses.
Since you are allowed a standard rate that includes
gas, depreciation, maintenance and repairs, lease
payments, oil, insurance and vehicle registration
fees, you need to maintain fewer records.

14. You will need to keep track of:
•Daily mileage for business use
•Total mileage for year
•Parking and Toll Road Expenses
•Date you put the car into service
For more on what defines business use go here.

15. Actual
Expense Method
This method is generally
more beneficial if you have
high maintenance on your
vehicle or have less mileage.

16. Actual
Expense Method
This method is generally
more beneficial if you have
high maintenance on your
vehicle or have less mileage.
If you use your car for business and
personal reasons, you must also
figure out the business percentage.

17. For example,
If you traveled 15,000 total
miles during the year, and
5,000 miles were for
business, your business
usage is
33%

18. You can then subtract
33%
of your car
insurance, lease payments,
maintenance, etc. to come up
with the amount you can deduct
as a business expense.

19. You should keep detailed records of:
•Daily mileage for business use.
•Total mileage for year.
•Gas receipts.
•Maintenance and repair costs
and receipts.

20. You should keep detailed records of:
•Lease or car payments.
•Vehicle registration fee.
•Vehicle insurance .
•Date you put the car into
service for business use.

21. Almost all equipment used in
business that is expected to
last ONE YEAR OR MORE can
be depreciated.
Many things such as furniture, computers, and even
landscaping can be depreciated.

22. Records you need to maintain
for depreciation are:

23. Records you need to maintain
for depreciation are:
•Model of vehicle, or description of equipment/
purchase.
•Date item was placed into service for business use.
•Cost Basis, which is purchase price, plus shipping
and installation costs.
•Any improvements or additions to original cost basis.
Depreciation continues for 3 to 39 years, depending on the item.

24. Remember,
if you take the equipment out
of service or sell it,
depreciation on that item
stops, and you should keep a
record of the sale date or
date it was taken out of
service.

25. Recordkeeping
methods

26. The IRS
plainly states
that:
“…you may choose any
recordkeeping system suited to
your business that clearly shows
your income and expenses.”

27. The IRS plainly
states that:
“…you may choose any recordkeeping system
suited to your business that clearly shows
your income and expenses.”
All sorts of recordkeeping systems - from paper
notebooks to accounting software are acceptable

28. Written Records
A written record can consist of
an account book, log, statement
of expense, trip sheet, or similar
record.
Many people swear by a
written logbook,
especially for mileage
expenses.

29. Written Records
Advantages:
It is easy to keep in the car with you,
always available, low cost, and does
not depend on the availability of an
Internet connection.

30. Written Records
Disadvantages:
However, you must do calculations and sorting by hand,
which may be time consuming in the long run. There is
no backup in case your
logbook gets damaged,
lost, or destroyed.

31. Computer programs
Programs like Excel can perform many
functions to help you maintain accurate
records of expenses, and
you can easily add
additional data or
fields, if necessary.
You should always do a frequent
backup of your files to ensure that
important material will not get lost.

32. Quicken® and QuickBooks®
Are two well-known programs
that let you integrate bank
accounts into your expense
category, and allow you to
customize reports, and sort
them according to date and
category.

33. Mobile Apps
There are a variety of
mobile apps for keeping
track of business car
expenses. MileTracker
is a popular option for
iPhone users and
Mileage Tracker is a
popular option for
Android users.

34. Remember
The fanciest record
keeping system in the
world will not work
unless you
enter the data.

35. Remember
The fanciest record
keeping system in the
world will not work
unless you
enter the data.
It is best to record the information
about your purchases and
expenditures soon after they
are acquired.

36. In the words
of the IRS
“…well-organized records make it
easier to prepare a tax return and help
provide answers if your return is
selected for examination, or to prepare
a response if you receive an IRS notice.”

37. Remember
A minute of
organization now,
will save you time
down the road.

38. And Finally...

39. To learn how to
simplify the process of
running your business

40. By checking or
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