Record Keeping

office organization

Do you long for an office that looks like this?  Are you a HOT MESS when it comes to keep your records organized?  I THINK I found a system that is working of me.  In this age of technology, I find that paper works for me.  I know a shocker, right?  Yes, it is March 18th and I am still working on my taxes – not because I am a HOT MESS but just doing the avoidance dance.

For my direct sales follow-up, I have a tickler file by date and one for months.  This allows me to file papers on the day that I need to follow-up with people.  So old school but if it isn’t broken – don’t fix it, right?  My ARC calendar has become my “bible” with list of do’s, sticky notes on dates that I need to get things done and one central spot to track appointments, etc.

As I was doing my taxes, I found that the notes on my calendar helped me to remember things that I had done and placed where I had gone.  My only concern is if that was enough information for the IRS if they were to come a knocking’…  I came across this tax tip From Ronald R. ‘Ron’  Mueller, MBA, Ph.D., Tax Educator & Author of “Home Business Tax Savings, Made Easy!”

Tax Courts have ruled that even a taxpayer’s notes written in longhand , including those recorded in pencil, is acceptable as evidence in Tax Court legal proceedings.  So, keeping “IRS-Compliant” records of your business activity is really easy!  Just jot notes every day in your calendar, day planner, planning diary or in your bedtime memoirs.

WOW!  This is great because in order to track what I have done versus what I wanted to do – I highlight in “green” the tasks that are competed.  YEAH, record keeping made easy!  The IRS will take that as documentation that I have worked my business consistently during an audit – that is AWESOME!

Are you keeping good records of your business?  What is your system to show the IRS that you are a legitimate business and not a hobby?  Share your tips with us

Have a ThirtyOne-derful day!

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