This is the reason why write offs are so important. Our very own Karlton Dennis was published in Forbes Magazine this year. Below is a quick overview of his article, but go ahead and click the link above to read the full article!
As a business or real estate owner, you can be sure to have lots of meetings and business conversations over a meal. Unfortunately, many folks do not know that you can write off these business meals by taking the time to legally document them. Below are three ways to assure that you are legally documenting your write off and protecting yourself in the case of an audit.
- Where are the receipts? As a business owner or real estate owner, this one might be obvious. However, did you know that there are apps now that can help you keep everything organized? There are apps that take photos of your receipts and store all the information for you on an easy, online platform. Your phone is always in your pocket- be sure to put it to good use! On top of this tip, there are some more things you may not know about saving important information.
- Who did you eat with? In order to protect yourself from an audit, or even show proof in an audit, you want to have all the facts. In order to have all the facts, you NEED to write them down. The same goes for who you met with. You want to be able to gear yourself with all the right facts, so making sure to document who you ate with on or with the receipt is the best way to have a stable paper trail. Think we’re done? Think again, cause there is still one more step to consider.
- What was the meeting about? Whether it was meeting a new client, or a budget meeting- it needs to be documented. A common mistake among business owners is that they do not document what the meeting entailed, or what the specifics were. Imagine trying to explain to someone what you did last year on June 15th, and even more, what was said. This is just another extra step that will help you in the long run. Making sure to jot down, “budget meeting,” or “client on-boarding.” This step seems excessive, but it really isn’t. It is a necessary and proven step in guaranteeing that you are being deliberate and cautious when it comes to your business because your money matters. this keyword is write offs
We hope that you take these steps into consideration and learn more tips like these. Head over to the full article and read what our experienced tax strategist Karlton, had to say about these steps!