Tax Tips

Business accounting can be a daunting task. Whether you're using accounting services or not, here are some helpful tax preparation tips to alleviate some stress at tax time. Business accounting can be simple enough if you follow these tax tips guidelines.

1. Maintain your business accounting ledger book. Be sure to set some time aside during each day and week to keep you books up to date. You may be busy with other tasks, but finding the time to update your books regularly will ensure smooth tax preparation at the end of the year.

2. Keep a mileage chart in your car at all times. Every time you use your vehicle for business, jot down your mileage. At the end of the month, file it away and start a fresh chart. At the end of the tax year, you'll have easy access to your monthly mileage records.

3. Track your business expenses these include office materials, from paper and pens to computer hardware and software. Keep ALL of your receipts! Every time you purchase an item for the office, file the receipt in a safe place and log the purchase amount in your business accounting ledger.

4. Track your utility costs you need heat and hydro to run your business, right? These, too, are deductible at tax time. Whether it's a home office or storefront, a portion, if not all of your utilities can be claimed as a business expense.

5. Advertising Costs "it takes money to make money," which is why you can deduct your advertising and membership costs as a business expense.

For more information about tax preparation or accounting services, call Murphy & Co. now at 508-238-5357.

Call the Murphy & Co Boston Accountants today. Do what you do best run your business. Let us handle your small-business accounting details.