Capture Those Last Expenses Through Reimbursement
As the company's owner, many times during the year you'll find that you have paid for some business expenses personally. It is very important that you submit receipts for those items and have your business reimburse you for the expense. Every year, we find that these types of expenses (that can lower your taxes) are easily forgotten. I would guess that over 10% of deductible expenses are not used because of poor record keeping.
Additionally, it looks much better to the IRS if you reimburse yourself with a business check, instead of just making a journal entry long after the transaction. The better you document these expenses, the less hassle upon audit. You must separate your business life from your personal life, just like the separation of church and state doctrine.
Here's a list of things you may have forgotten.
- Major fixed assets - computers, software, office furniture, mobile phones, maybe even a car
- Travel and entertainment expenses
- Business books and periodicals
- Dues and publications
- Supplies - briefcase, pens, etc.
This list is just a start. So get your thinking cap on before year-end and get yourself a check.