An important aspect of tax filing is your ability to gather and save receipts. To organize receipts for tax deduction purposes, some find it tedious, messy and can even be a nightmare especially for those who consider themselves unorganized.
Some of the receipts or documents that small business owners usually keep are:
- Paid bills
- Sales slips
- Deposit slips
- Cancelled checks
- Petty cash slips
In case you’re wondering what’s the most efficient way to keep track of receipts for a small business, then do check out Shoeboxed.
Organize receipts for tax deductions with Shoeboxed
Shoeboxed is a safe online expense checking system that helps save families & entrepreneurs a lot of time by automating as well as simplifying activities that includes expenditure reporting, accounting and tax preparation.
How does it work?
You could mail shoeboxed your business cards and receipts and they will examine and arrange them for you. As soon as the details are examined they will often possibly destroy the documents to safeguard your privacy or they will mail them back to you.
You can utilize the free shoeboxed application to scan and organise receipts or business cards yourself. This provides you the extra comfort or keeping a receipt soon after you buy a product. You could incorporate a note with the receipt for future recommendation.
Benefits of using Shoeboxed
It is possible to acquiesce receipts saved in your Shoeboxed account for tax presumptions. These are kept in a standard that is accepted by the IRS. Receipts can certainly be modified to PDF, XLS or CSV formats that could be ideal for budgeting. It then becomes easier to monitor regular weekly and even monthly expenses.
Shoeboxed are often used to generate invoices for business customers. You can also incorporate it with QuickBooks or other accounting systems so you won’t need to enter the information multiple times.
How can Shoeboxed help you with your taxes?
- All digital receipt images from shoeboxed are IRS accepted.
The IRS happens to be recognizing digital images of receipts since 1997. Shoeboxed certainly gratifies the IRS requirements by making sure that receipts are clear to read as well as ensuring that they link back to various purchasing recommendations, such as credit card spending. This could be a rescuer in the event of an audit.
- Bulk Receipt Envelopes.
On the paid plans, you can simply mail Shoeboxed that stack of receipts you have been saving all year in what they refer to as a “Magic Envelope.” Pretty handy at this time of year, or a bit earlier. Within a couple of days, you will have an online archive to assist you in searching documents needed to file your taxes.
- Categorization of receipts into pre-defined tax categories.
Shoeboxed employs an algorithm to instantly place receipts into the appropriate default tax category such as Office materials and Refreshment/Entertainment. You can even modify the categories to ensure it is even easier to locate the tax assumptions.