Many freelancers simply throw paid invoices or receipts into a box and sort through it come tax time. Save yourself the stress! At the end of each week input write offs and expenses into an accounting spreadsheet and then file the paper receipt away in a cardboard box that can be stored away. Remember, you’re running a business and must strive to do so efficiently.
Additionally, pay for everything with a credit card as this allows you to keep track of all your expenses, not to mention the added insurance.
The following expenses are tax deductible, so be sure to have a file for each one and keep all receipts, copies of bills and supporting documents.
* Advertising (letter head, business cards, mass letters made up to introduce your services to companies, ads placed in the media.)
* Accounting-fee paid to professionals for accounting or legal services is deductible.
* Rent of office space
* Office supplies
* Food and entertainment related to business
* Checking account, bank and credit card fees
* Vehicle expenses when the car is used for business.
* Transportation costs
* Shipping and postage fees; copies and printing
* Events, conferences, or classes related to your professional
* Magazine subscriptions and books related to your work.
* Office equipment and furnitureÂ
* Health insurance premiums
* Wages for other employees
If you’re unsure of whether or not to keep a receipt-keep it. Murphy’s Law dictates the day after you toss it, that you’ll need it! There is a time to throw things away and it’s called four years from now (or the date you got it.)
