If there were $20 bills sitting on the floor of your truck, would you notice? Is leaving money on the floor something you would do? Would you lean over and pick them up, straighten them out and put them in your wallet? Of course you would!
So….why are you leaving your business receipts there to gather dust (and worse)?
If you use your truck for business, and pretty much every horse person does, then those receipts represent money. Yes, money you spent, that’s obvious. But that’s not all. If they’re related to your business, they can put money in your pocket by reducing the taxes you have to pay.
If you’re thinking it’s not worth the bother, think again. A $50 business expense, properly documented, can save you $7.50 to $20 or more in tax liability! If you’d lean over to pick a $20 bill off the floor, surely you’d lean over to pick up a $20 tax savings.
Once you realize those receipts have value, the next question is “What do you do with them?” Used to be you put them in a box to “save for the accountant”. If you had the time or help, you’d sort them by type of expense. If not you’d pay extra to have that done at tax time. Either way took a lot of space and hassle.
Happily, 21st century technology offers easier and better options for dealing with business receipts. Take a picture with your phone and save it to an app that’s connected to a ‘cloud’ accounting system. It’s not quite magic, but it may feel that way, especially if you have someone who knows what they’re doing making the whole thing work.