Hope everyone is getting ready to give thanks and celebrate Thanksgiving this week. I truly love this holiday because I have so much to give thanks for!
No doubt after Thanksgiving I will get receipts from my clients for business expenses related to Thanksgiving. Giving to charity is perfectly acceptable, but writing off your entire Thanksgiving meal might not be.
In fact, last week we talked about some of the craziest business expenses recorded. This week, I want to talk about how to tame business expenses gone wild. Here are some of my favorite tips when it comes to business expenses:
- KEEP TRACK OF YOUR EXPENSES ELECTRONICALLY – Brigade Bookkeeping is constantly reconciling our client’s books and examining their expenses. That’s why we ask clients to keep track of every expense electronically. There’s plenty of accounting software available now, scanners to scan and keep track of your receipts and even apps for your mobile device that can store your expenses in your device or virtually in the cloud. If you need specific suggestions, e-mail me or if you have a preferred app, let us know about it.
- SAVE YOUR RECEIPTS – I always ask my clients to keep track of their business expenses in case of an audit. It’s as simple as writing down the purpose of the expense right on the receipt and either scanning it, taking a picture of it or using a handy app to store the information.
- DON’T MIX BUSINESS WITH PLEASURE – Try to avoid using business credit cards, company checks or petty cash to make personal purchases. Even if you plan to pay the company back, don’t mingle business and pleasure. It could be a red flag for the IRS and nobody wants that.
- BUDGET – Make sure to create a budget at the beginning of the year and stick to it. At Brigade Bookkeeping, we not only try to project company earnings, but we look at our client’s expenses to see if there’s anywhere they can trim the fat and improve their bottom line. Your accountant or bookkeeper should be monitoring your business expenses and revenue on a monthly or at least quarterly basis.
It’s not hard to tame business expenses gone wild, but you have to budget, keep track of receipts and routinely examine your business. If your accountant or bookkeeper isn’t doing this, then give us a call or e-mail our Brigade Bookkeeping team, so we can anticipate expenses and increase your profits. Now that’s something to be thankful for!
Happy Thanksgiving everyone!