Bookkeeping and Online Bookkeeping Services

Do you know what expenses are deductible and how to maximize your business deductions? Unless that gets reflected in your bookkeeping (at times misspelled book keeping or bookeeping), it's as if your tax planning never happened. Here are a few suggestions on how your bookkeeper can boost your tax deductions.

Reimburse yourself for business expenses. You probably you have paid cash in a restaurant for a business lunch, or taken transportation to the airport that only accepts cash. Be sure to keep receipts and turn them over to your bookkeeper (sometimes mispelled book keeper or bookeeper) in the form of an expense report.

Code expenses that are 50% deductible to a different account than expenses that are 100% deductible. To use meals as an example, most are subject to the 50% rule; however, some are 100% deductible. If your bookkeeper codes all meals to just one account, then the assumption is that all meals are 50% deductible. There's no attempt to identify possible meal expenses that could be 100% deductible.

Separate travel expenses. Separate all travel expenses as part of your bookkeeping system. Keep meals, transportation and other expenses separate. Otherwise, your bookkeeper will have problems at the end of the year.

Keep a daily diary of all expenses incurred. Use the entries in your diary to keep your bookkeeper informed of all daily expenses. And keep receipts for everything, no matter how small. Your bookkeeping firm should record both income and expenditures on a regular basis so that items are not lost or forgotten and included in the bookkeeping records.

Stay current with your bookkeeping. Review your Balance Sheet and Profit & Loss Statements on a regular basis. Set up a logical time to do so, such as when you're balancing your bank account.

Proper bookkeeping will boost your tax deductions, particularly for travel, meals and entertainment.

Still have questions? You can contact AccountantsGuaranteed.Com. They offer a free research service that puts small businesses together with accounting and bookkeeping professionals who can give you answers. They offer no-cost help at www.AccountantsGuaranteed.Com. It's only for US businesses, however.