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More About the Author

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Lower Tax Bills And Bookkeeping For Small Business Finance Articles | May 21, 2008
Financial record keeping and bookkeeping by small business is occasionally accurate but often produced once a year for tax purposes. By maintaining a diary, retaining all receipts and updating the accounting records on a regular weekly or monthly basis small business can seriously account for all costs and reduce the final tax bill.


Tax authorities are often relaxed about the need for small business to prepare and produce formal accounting records. Often the requirement is simply that each business retains sufficient financial records to support the accounts submitted.


Such advice from tax authorities places a burden upon small business in that the vast majority are honest hard working people who are meticulous about keeping accounting records of sales made during the financial year. Unfortunately many small businesses are not so meticulous about keeping financial records of business expenses in their accounts.


A typical taxi driver may for instance keep a diary and record the daily receipts from his fares. If those recorded receipts are accurate then the total sales turnover for the year will show the correct total. The same may not be true of expenses and the accounts thereby overstated.


The total business expenses of the taxi driver would mainly include the fuel receipts plus the other running costs of the business. Typically a receipt for fuel will be obtained and kept in a file or shoe box. Some may get mislaid and lost and be missing from the final accounts preparation.


Other receipts for miscellaneous items may not even be retained as forgotten, lost or not thought of at the time of purchase. Examples may be purchase of the diary in p.com/]Cheap Soccer Jerseys Free Shipping[/url]