Tax Preparation Archives - Moose Creek Bookkeeping, LLC

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November 1, 2022

by Amber Esquibel

Why Do I Need To Save My Receipts?

Welcome back! The cool Fall weather is finally arriving marking the beginning of the holiday season. As Christmas trees are already on display we are reminded that our favorite time of year is just around the corner… TAX TIME! Not your favorite, you say? Are you worried you haven’t been organized enough during the year? Well, you’re not alone. Most people dread tax time because they are unprepared. We are here to discuss the number one way you can prepare for tax time: Saving your receipts. Saving your receipts isn’t optional, it’s crucial to your business and offers peace of mind if you’re up late worrying about the dreaded IRS audits.

 

Year-round, Moose Creek Bookkeeping is helping companies large and small learn how to prepare for tax time and the very first lesson we teach is “save your receipts”. This is because your receipts contain critical information that might be lacking if you are only looking at a bank statement. Receipts contain the date, description of good/service, vendor, price, taxes/fees, and mode of payment. Your bank statement only shows the date, vendor, and price, which isn’t adequate, according to the IRS. You must be able to show a detailed view of all expenses to prove they were legitimate. The IRS cannot discern between a $400 Epson Printer versus a $400 Cat Tree.  You will need to prove the purchase was an office expense and not a luxurious cat condo for Mr. Fluffpants.

 

Now, we understand keeping track of receipts is no small feat. As a small business, we use and recommend a digital receipt keeper called Hubdoc. Hubdoc has been a game-changer for all our clients who chose to use it. It does require input from you in the form of a photo or upload, but that’s where your work ends. Hubdoc reads your receipts, gathers critical information, and magically creates usable data – no more data entry! This program has saved our clients countless hours with its ease of use and friendly interface. Even our old-school, paper-saving clients have made the change to digital receipt keeping.

 

In addition to using a digital receipt tracker, we always recommend adhering to best practices to keep track of receipts before you need to enter them in Hubdoc. Here are some tips we offer to all our clients:

  • Always write a note at the top of each receipt about what the expense was for. This can also work as a reminder for future reference. Hubdoc features a ‘notes’ section for this exact reason.
  • Make sure the receipt contains all the necessary info. If it is lacking information, promptly make a note, to not forget.
  • Supply ‘receipt bags’ to employees to aid them in receipt organization and emphasize the importance of receipt retention.
  • Keep telling yourself that all this record-keeping will pay off in the event of an audit. All your hard work will benefit your business in the long run.

 

Please reach out at any time to set up a discovery call with us. We’d love to talk about how we can help your business improve its books, aid in receipt management, and give you peace of mind when it comes to accounting. At Moose Creek Bookkeeping we are dedicated to teaching you the best accounting practices, offering solid advice, and giving you the tools to build a strong financial foundation that can weather any storm that may come; including an audit.

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January 12, 2022

by Amber Esquibel

Now that 2021 is over, what does this mean for your small business? and what your business goals?

While many people focus on celebrations and new year’s resolution this time of year, small business owners also need to focus on year-end business planning. This includes both preparing for the new year, AND taking reflection of 2021!

But because the end of the year is so hectic, it’s not always easy to keep up with all the end-of-year tax preparations you should be doing to wind down 2021 and plan for 2022. We have put together a checklist to help with this process!

Gather all the documents you can find in your business.

  1. Bank statements (12) for each account -to calculate income
  2. Receipts associated with the business expenses – Expenses
  3. Receipts of your contributions/distributions to the business
  4. Loan, line of credit or lease agreements (this could be for equipment) – Liabilities
  5. Fixed Asset information and documents (business property, equipment, trucks) – Assets
  6. Sales tax information – Liabilities
  7. Mileage or car/travel expenses – expenses/deductions
  8. Home office expenses – expenses/deductions
  9. Payroll information (W9 for contractors and W-2’s and I-9’s for all employees) – Liabilities
  10. Estimated tax payments – Owner’s distribution – Liabilities

Always check with your CPA or Tax Prep for the list of documents needed but this should get you started on the right track for tax season.

Now let’s talk about what your business goals are for 2022?

Have you made your goals for 2022 and looked at how you did with your goals last year? Have you crushed your business goals and have huge goals to grow this year?

This is a great opportunity to connect with a bookkeeper to help you understand your financials and create realistic goals for 2022. With our advisory services combined with monthly bookkeeping you can take your business to the next level!

If you have been considering hiring a bookkeeper, let our team at Moose Creek Bookkeeping show you how our custom, outsourced bookkeeping services offer a better way. Call us at 346-298-2252 or schedule a free consultation on our website.