Would you throw a dollar bill into the trash can each time you pass by the can? Sadly many small businesses strapped for cash do just that when they lose track of tax-deductible receipts.
Think about it. Can you recall exactly what happened to that parking garage receipt once you went through the turnstile? Or what about that business receipt you pocketed right after your breakfast networking session – what happen to it?
Some entrepreneurs have resorted to using clothes pin to clamp those little rascally slips of paper, which seem to have as many tricks up their sleeves as a regular Houdini. Have you ever stopped to think about a paper receipt’s uncanny ability to slip away and disappear into some mysterious dark corner of your coat pocket? Exactly how do they do that?
The aggravation factor involved in keeping track of little bits of paper is one reason why many small business owners simply give up trying to organize their business expense receipts.
To make matters worse, there’s also the aggravation of those irritating ink-jet printers — the kind with the disappearing ink that fades away before the next tax season rolls around. When you finally get around to dumping that bag of receipts onto your desktop, you often find they’re simply unreadable.
It’s all too easy to dismiss the notion that it really matters all that much, because the amounts are seemingly so insignificant. Yet, that ‘pocket’ change can add up to real money. Don’t believe it? Just whip out a calculator and see for yourself how those $5 or $10 receipts mount up during a year to a sizable amount of money.
For a small businessperson it is worth the effort, because you deserve every single penny the IRS allows you to claim as a deduction. For more tips on organizing your tax-deductible items, check out this article from Entrepreneur Magazine.