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Recording Business Expenses by Small Business, Contractors and Home Businesses
No Chart of Accounts
With TaxGst its simple and easy to record and manage your expenses as there is No useless chart of accounts to bother with.
This means you can create simple easy to remember categories without the need to perform useless double entry accounting, or having to remember hundreds of categories from a chart of accounts
Don't mess about with Business Expenses - Keep all Receipts
One of the most common phrases I have heard over the years is "where are those receipts"
I personally have at times been a victim of my own disorganization misplacing receipts on numerous occasions.
The only way for any Small Business to received any type of deduction is to be able to show proof in the form of a receipt or some other document.
Without such proof it becomes hard to prove that the expense occurred. In many cases without the receipt the item cannot even be claimed, and anyone claiming without proof could be fined if the tax office audits your books.
Keep proof of your Business Expenses
Small Business needs to manage receipts as if it was money going into their wallets, as it very well can effect that end product. Have one location for all the receipts, even if you only do your books once a month, manage the receipts on a daily basis.
At the end of each day place your receipts in a box located in a convenient location, in the kitchen or close to where you put your mobile phone and keys before resting for the evening.
By locating the box in a convenient location and not having to go out of your way to put the receipt into the box at the end of a hard day at work you can be guaranteed that you are more likely to retain more receipts.
A friend I know has a plastic container with a locking lid that sits on his garage fridge. Each day one of his first enjoyments is to grab an ice cold beer before relaxing. He pops his receipts into the container as he grabs a beer, without having to go out of this way.
By managing your receipts and by not loosing or misplacing them, you are almost guaranteed on reaping the rewards later by being able to claim the expense as a business deduction, thus minimizing the amount of income tax... Which means more ends up in your wallet, and less for the government to waste.
Recording Business Expenses into our Software
Recording of both Income and Expenses is simple with TaxGst Accounting, as you are able to enter any expense or income item for the year at any time. You do not have to be in that month, nor do the expenses require to be entered in date order.
At the bottom of the expense screen (not shown above), you have two icons which allow you to select between date order or entry order. What this means is that you can view the entries on the screen in the order in which you entered them, which is great when entering bundles at a time. And then click the button allowing you to see all the expenses in date order, which is the most logical order for viewing and printing.
The reports will always be printed in date order as shown below
If you are looking for a specific entry and you have many hundreds of entries, you can select the drop arrow next to the "ALL" button and select a specific group of entries, such as motor vehicle expenses. This will allow you to view the entries for that category. Easy and simple.
Grab a copy of Tax Gst Accounting today, take it on a test run, enter expense entries and play with the process, you will be surprised how easy and flexible it is. If it suits your needs great, if it doesn't you have kept the money in your pocket.
