Tax Day 2011

Certainly, no one loves paying taxes and April 15th is not likely to be a day you celebrate.  None the less, death and taxes are two realities every one has to face so let’s spend today being pro-active about at least one of the two – taxes.

Are you taking advantage of all the deductions you are legally entitled to?  I read a fun article in the Wall Street Journal about a former tax accountant who became a teacher and now reaps the benefits of tax deductions.  You can read it hear for inspiration.

Your tax accountant is probably taking a well-deserved vacation on a tropical island for the next two weeks but call and make an appointment for the first week of May.  If you don’t already have a tax accountant, spend the next couple of weeks getting recommendations from friends.

He or she may recommend you form an LLC for your business if you haven’t already.  Your accountant can also help you review your current expenses and determine which items may be eligible to deduct on next year’s return.

Invest in easy to use apps for your smart phone, a receipt scanner for your PC such as Neat Receipts or just some nice notebooks, plastic receipt storage envelopes from The Container Store and file folders if you prefer the low-tech method.  Keeping track of expenses is key to being able to deduct them.

Also, keeping track of expenses give you data to use in analyzing the results you get for the amount invested, help spot areas of overspending and lead you on a path to greater profitability.

Don’t be an ostrich and put your head in the sand!  Jump in and take control of your business, related expenses and legal deductions you are eligible to take.  If you do, next April 15th you may actually have more to celebrate!

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