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Bookkeeping, The Bane Of Every Small Business
This tip will save you time and reduce grief at tax-filing time.
If you are a free-lance or remote writer and you actually earn an income, you need to keep track of your expenses. Most people are familiar with the story of the self-employed wretch showing up at their accountant's door with a shoebox full of receipts. There is a better way.
If you earn an income and you work from home there are numerous expenses you can deduct to reduce the amount of tax you pay. This article is not about what categories you can deduct or how much. That is between you and your accountant if you have one and if not, between you and the tax department.
The best way to stay on top of your expenses is on a daily basis. How I do that is as follows. On top of the fridge, I have a box for receipts.
Not for the monthly bills, such as cable but for all the little day to day ones. When I meet someone for a coffee and return home, I mark on it whether it’s business or pleasure and put the receipt into the receipt box. If I go to the post office to mail a package or letter, the receipt goes into the receipt box again, marked business or pleasure. Even…
