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 it’s important to keep accurate records throughout the year so you can be more prepared during tax season. It’s 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 don’t need the added expense.
Receipts are very important because it shows what you have paid, which is referred to as your loss. If you don’t 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 don’t 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 anything.
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 don’t 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.