3 Tips For Keeping Proper Tax Records For Your Home Business – And Keeping The IRS Happy!
The last thing most people think about when starting a business is doing taxes. But proper planning will make doing your taxes much easier - and keep the IRS happy!
Here are 3 simple tips for keeping proper records:
1. Whenever you buy anything for your business, keep the receipt!
Not only will this make record keeping a lot simpler, but if you are ever audited (having your tax return reviewed in detail by the IRS), you can prove your expenses, and save yourself money.
2. Write down all your expenses and income as they happen.
As your business grows, you'll have more and more activities to keep you busy. The last thing you'll want to do each April 15 is to organize your records for the year. So, it's a good idea to write down all your financial activities as they happen. You'll find preparing your taxes will take much less time if you are organized.
3. Learn how to save money on your taxes.
As you learn about taxes, you'll find that there are many deductions (expenses that reduce your income, and therefore your taxes) you can take that are not obvious. When using your home office, you may be able to deduct (at least partially) repairs you make around the house, utilities, your home's value at the time you start your business, and more.
The more you know about taxes, and the more organized you are in keeping records, the more time and money you'll save at the end of every year!
What happens if you don't keep proper records?
Individuals with small businesses are the most likely to have their tax returns audited by the IRS. If you don't have a receipt, you will likely lose the deduction and owe the IRS money.
And while an audit does not have to be feared, you should be prepared - the more organized your records, the easier it will be to prove your case.
If you don't have one, get a file box and some folders at your local office supply store (these supplies are deductible, so keep your receipts!) and create a filing system for your business. Put all your receipts in the proper folders, and put them in a safe place.
Another way to save yourself time is to record all of your business transactions - expenses and income - on a spreadsheet on your computer. Keep a column for income, advertising, supplies, etc. You don't need to be a computer expert. But keeping accurate, organized records will help you save time when you fill out your taxes at the end of the year.
And it can help you plan, by giving you a snapshot or your financial progress whenever you need it.
Which may come in handy when you need to place ads, borrow money - or take a much needed and well-deserved vacation!
Low Rate Car Loans: Get The Best Deal
The best way to haggle for the best fair profit in car loans is to get one with low rates. Interest rates depend on several factors. If your lender charges you low rates, then that means that you have met the criteria needed in order to get good rates on car loans. So what factors can contribute to being charged low rates? Below are a few things you might want to consider if you want to get the best car loan deal available in the auto financing market.
Low Rates Car Loans: Obtain a copy of your credit report.
Approving applications for car loans is a rigorous process and involves a myriad of variables. One of the first things that your lender looks at when evaluating you for car loans is your credit report. If you have good credit, then your chances of getting low rates are high. However, if your credit is bad, there’s every chance that you won’t get low rates for your car loans. Borrowers with good credit usually get car loans for low rates that range from 1 to 1.9% APR.
If you want to improve your chances of getting approved for car loans with low rates, then it’s always a good idea to obtain a copy of your credit report first. In this way, you’ll know beforehand what you’re facing with when you apply for low rates car loans. You can get your credit report from online credit agencies, such as Experian, Equifax, TrueCredit, or ConsumerInfo.
Another thing that you need to remember with your credit report is that the more times your credit gets pulled out; the greater your chances that your credit rating will drop. With this in mind, it’s never a good idea to go around the country applying for car loans here and there in an effort to get low rates. It’s better if you get your own credit report and just simply fax a copy of that to a dealer. Any lender or dealer can pre-approve you for low rates car loans using the fax copy. Of course, before finalizing anything, they would perform one last check on your credit and they would have to pull out your file to do this. But this shouldn’t be reason for panic. That’s just one credit check on your record and the damage is considerably less.
Low Rates Car Loans: Get them from Prime Lenders.
A good way to get low rates is to get your car loans from prime lenders. Examples of prime lenders are banks, credit unions, and other large lending institutions. Banks often charge low rates for their car loans, thereby saving you thousands of money in monthly repayments. Credit unions also offer low rates for their car loans, lower even than those offered by banks. If you’re a member of a credit union, you enjoy even more incentives, such as special low rates, additional features, and more.
Low Rates Car Loans: Look at Tiers.
If you want to get low rates for your car loans, then you should be prepared to do a good amount of research. If push comes to shove, you can always go to your bank and speak with any of their loan officers regarding their credit tiers. These are usually rated as follows: A, A-, et cetera.