MPL Bookkeeping, LLC.

Tip of the Day!!

Most tax departments require businesses to keep the documents that back up their tax claims for a minimum of 5 and often 7 years. These are documents such as invoices, receipts, wage records, etc.

👇 Below are four ideas on how to get well-organized and start a filing system for your business. 👇

👉 Issue your receipt a local keep area in your office and even if you don’t have time to sort them least each month you can find them.
👉 Also have an organized filing system in your computer as well, issuing folders for invoices, deposit records, HR and payroll.
👉 Backing up your work to an external hard drive will ensure you have backups of your documents. You can also use cloud based apps like drobox or google drive.
👉 Lastly having a password list or having them stored in apps like LastPass, google passwords, or last thing having them on a password protected excel worksheet.

Reimburse Yourself for Business Expenses

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We can try to keep all our business and personal expenses separate, but there can come a time when it is impossible.

If you purchase a business-related item, the rule is the expense should show up on your business books. You would record any expense on a reimbursement spreadsheet along with a date, vendor information and attach the receipts. The company will then write you a check for the exact amount.

This process might seem like a lot of work, but it would guarantee that your business books are correct.

💰 Saving For Taxes 💰

Here are a few tips that can help you and your business when it comes down to taxes!

👉 Note you should review your returns from the previous three to five years. This can help determine how much you should set aside for taxes.

👉 Open a separate business savings account. Setting money aside each month instead of quarterly will be less of a string for your business.

👉 Never borrow from your tax savings account; this can cause you to lose track of your true savings goal and create bad habits.

‼️ Remember, unpaid taxes can incur penalties and interest from the IRS, so saving during the year can avoid a big headache at the end.‼️

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Last night working late on client books but enjoying a nice cold Coke and payday!!

Tip of The Day!!
Don't Mix Personal and Business expenses!

For new business it can be hard to learn the habit of keeping track of business expenses. Here are two ways to help keep them separate.

📑 Opening a new business bank account. You can go to different banks and speak with a banker about the different options they offer for business owners.

📑 Applying for a business credit card.