Track Expenses Carefully

by Jenn

Taxes are a pain, I can barely balance my checkbook! I have a good client who is an accountant, so he gets massage treatments in exchange for handling my tax work. I keep receipts for everything- I have a file folder for my receipts, such as training classes and certification, equipment (oils, table, etc), travel (gas, parking), advertising, and other categories. The best tip I can offer is to be organized. If you don't make money, you aren't taxed, but if you can't prove that you have a legit deduction, then you can't take it. I just turn the file over to my accountant quarterly, and he does the math. I do check it, though, to see how I am doing.

The best thing to do is get a good accountant who is familiar with small businesses and work out a swap of services. Make sure you can trust this person, and don't just take them on blind faith- I go over all of the numbers and documents, I just let him do them first.