1. Save your receipts throughout the year in a box you can close securely.
2. At tax time, take your box to a quiet place that has a large surface area available such as a desk or kitchen table.
3. Gather scrap paper, post-it notes, pencil, your mileage book, Schedule C form, paper clips, and a calculator.
4. Using a piece of scrap paper, make a list of all the categories listed on the Schedule C such as office supplies, travel, adverting, etc.
5. Divide all receipts from your box into piles according to the categories you listed.
6. Use post-it notes to label each pile according to its category.
7. Use the calculator to add the total up of all the receipts in each pile, and add this total to the corresponding post-it.
8. After each stack of receipts is totaled and labeled, use paper clips to secure the receipts together.
9. On a piece of paper, list all 12 months of the year.
10. Now add the mileage you (hopefully) recorded in a mileage book per month and record these on your list per month.
11. Next add your 12 month totals together for your total year’s mileage.
12. Finally, list the totals of each receipt pile on the category list made in step 4.
13. Save a copy of this year’s tax forms together with your receipts, so you have them for next year’s taxes.
14. A box that allows you to put hanging folders works nicely for storing receipts as well as previous years’ tax information.
15. Finally, if you are concerned that maybe you aren't getting all the business deductions you could, consider going to a professional tax accountant. It can be well worth the money, and you can often write off the cost this service on next year's tax return.
