As the year comes to an
end you may be scurrying around trying to find all your receipts throughout the
year. If you run your own business its important to keep accurate records
throughout the year so you can be more prepared during tax season. Its not
always easy to keep all the records accurate and up to date. So how can NYC CPA
or tax advisor helps save tax money this year?
First you need to
schedule an appointment with a CPA that you can establish a long relationship
with. You will depend on this person to help you pay the right amount of taxes.
You will also depend on that person to be accurate otherwise you may end up in
trouble with the IRA. This can lead to additional fees and fines that can cost
a lot of money. You dont need the added expense.
Receipts are very
important because it shows what you have paid, which is referred to as your
loss. If you dont have any receipts you cannot show that you have paid out
anything and therefore the IRA will assume that everything you made was a
profit. If you have trouble organizing a system that works best for you in
keeping track of all your expenses and receipts you may want to carry around an
envelope with you so that you can simply place all records in the envelope.
Leave it in your vehicle so you can put it in the envelope immediately. You may
also want to consider hiring a NYC CPA to help you keep records quarterly or
you can hire someone else to keep the records current for you.
If you do not run your
own business you will still need to keep track of your own records for normal
everyday household expenses. The main expense for households is medical.
Whether you have insurance or not you will pay out of pocket expenses that your
insurance does not pay each year. If you can itemize your taxes this year then
you can add your medical expenses on your itemized statement. If you are
allowed to itemize then you can add your mortgage interest as well. If you have
a receipt for $100.00 but dont know where it came from then how is it going to
save you money on your taxes? In fact you could have paid that $100.00 on
You may wonder how can
NYC CPA or tax advisor
help save tax? A CPA or tax advisor
knows what can be a deduction and what cannot. If you dont know, how can you
save? If you do the taxes your self then you may miss a lot of deductions and
credits that a CPA or tax advisor would pick up. This may save you money.
To get the most out of
your tax visit make sure that you spend some time organizing and labeling your
receipts. If you are ever audited you need to account for everything.