Year-end Checklist for Business Owners and Investors

Last week I shared some elements of the checklist at the end of the year my team and I use it with clients who have rental properties.

End of Year Checklist for owners and investors

As promised last week, this week, I share a couple of elements that apply to both entrepreneurs and investors in real estate. Here they are!

# 1 line of your books in order

Do you think that its accounting as a necessary evil? As something that has to be done before you can file your tax return? If you do, you’re not alone!

I see a few different accounts. I see accounting as a tool to promote tax relief.

Accounting is a key strategy tax curly. One thing is knowing what is deductible and how to maximize your deductions, but unless they are reflected in its accounts is like tax planning never happened.

Here are some tips on what to look for to ensure that your books are in order:

Make sure your accounts are current. Ideally, this means that its accounting is up to date until the end of last month or last quarter. As time passes, the chances of catching the deductions that have been lost – it is to maintain its current accounting is so important for the tax savings!

Checking accounts are reconciled. This simply means you have balances on their bank accounts, credit cards, debts and liabilities are accurate. The reconciliation of assets and liabilities account is the first step to ensuring that its accounting is correct and deductions are not lost.

Look at what is missing. It is very common to pay for business or personal investment. This can cause a lack of spending in the accounts of your business or investment, which means the loss of potential tax deductions. Make sure to come back to itself for such expenses – reimbursement of retention placed on the books.

# 2 of her travel documents, food and entertainment

Travel, meals and entertainment deductions are perfectly legitimate, provided they meet specific standards.

One of the rules to deduct travel, meals and entertainment is to maintain adequate documentation. In fact, if you checked, you can expect a request for documentation that supports these deductions.

Good documentation includes:

Expenditure

Description of expenditure

Expenditure

Date of expenditure

The objective professional expenses

The names and business relationships of those involved

Do not take your documentation to the light! There are many tax records for travel, meals and entertainment expenses that are specifically rejected because of incorrect documentation. This means that even if the expenses of travel, meals or entertainment is perfectly legitimate, can be denied if documentation is not correct!