Separate and capture records
Use dedicated business accounts and a consistent method for recording income, expenses, invoices and receipts.
- Reconcile accounts monthly
- Store source documents
- Track payment fees
Understand expense categories
Document the business purpose of expenses and obtain qualified advice about home office, vehicle, equipment and mixed use costs.
- Do not estimate carelessly
- Track business use
- Review current IRS guidance
Prepare throughout the year
Maintain a tax calendar, reserve cash and review reports before filing deadlines.
- Plan estimated payments
- Correct errors promptly
- Keep required records