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Handling Business Receipts in Preperation for Tax Season 2012

Tax seasons is just around the corner and most of us (including my self) are starting to prepare for the upcoming tax season. We’re scrambling to gather all the receipts, organize them, and tally up the totals.

I’m one of the semi-organized people. I pile all my receipts into a box, and come tax season I pull the box out to begin the mad scramble of organizing my business receipts. Every year during tax season I promise to change my ways and become more organized. Sadly, that’s yet to come true.

In spirit of changing my ways, becoming more organized and productive, I’ve gathered some tips for handling receipts to keep them organized and prepared for tax season.

1) Info Filler

I established a very good habit early on about filling out my receipts. It took me a while to remember to ask for receipts, but once I got into the habit, everything else came together. For instance, when you buy something, write the date and reason for the receipt.

For example:

Feb. 23, 2012 / Lunch meeting w/Alex from Fast Signs 

It’s essential to get in to the habit of doing this EVERY time.  This way you don’t have to think about what that expense was for. Since you write your self a note, it’s very easy for you or your accountant to cross-reference when filing your taxes.

2)  Easy Access

I fold all of my receipts in half. It’s easier to manage them and they take up less space. However, I fold all my receipts with a strategy. Always printed side up. This way the date and the vendor are easily exposed. It’s easier to organize them and all I have to do is unfold the stack once.

3) Routine

Establish a routine with your receipts. I stash my gas and food expense receipts in the car. At the end of every month I take them out of the car and add them to my business filing system.

My larger purchases/rentals or any other major purchase goes directly into my business filing system. This way I ensure that no big purchase gets lost.

4) Staying on top of it

Practice makes perfect and the only way to get better at something is to keep doing it over and over again. Organizing your receipts is no different. Staying on top of you receipt organization is a must.

We’ll  always find something more important to do, unless we force ourselves  to do keep at it on regular basis.

Lack of organization will only lead us to forget completely and miss out on a valuable business expense or personal tax credit.

I’m not perfect at managing my receipts, but I try to make a continuous effort at keeping my receipts organized. I’ll admit that most days it’s a pain in the ass, and I don’t like doing it. However,  when tax season comes around, I’m glad that I was at least somewhat organized.

Readers, do you have a process of how you manage your receipts?

Eddie

Valentines Day Special – Couples in Business Together

 

Every entrepreneur will tell you that running a business is in it’ self a labour of love. You live and breathe your business. So, what happens when couples become business partners. Can this be a good thing for the business? What are the upsides of running a business with your spouse? How about the downsides of a business partnership with your spouse?

It’s a tough call, and certainly there is no one right answer whether to enter a business together with your spouse or stay the hell away from the whole idea.

I’ll share some upsides and downsides of coupling together as business partners with your loved one. I figured a post like this would be perfect, and just in time for Valentines Day 2012 in five days.

Let’s start with the positives first.

Upsides of Couples in Business Together

Stronger Bond – Working together towards one common goal is always a good thing, and it’s even more attractive when you’re working towards this goal with your life partner.

Two heads are always better than one they say, so who better to be your business partner than your significant other.

My old neighbors were a perfect example of a couple in business together. They owned a cleaning business. She cleaned homes, and he focused on commercial cleaning. During the day he was home with the kids while his wife worked, and at night he’d head off to work, while the wife would stay behind with the kids. Worked for them for many years, until they eventually sold the business.

Learning Opportunity – It gives you the opportunity to see your spouse from a different angle. I assure you, that you’ll discover things about your spouse that you never knew before.

You may discover that your wife has the gift of conversation, no matter what the situation. While the wife may discover that her husband is an excellent problem-solver, with a “no project” too big attitude.

Team Work – Sharing duties at home is one thing, and sharing business duties is another. We’ve all got our own strengths and weaknesses, so why not maximize them? If one part of the couple is good with the numbers, get them to take the lead on it, while the second part of the couple focuses in an area that they’re strong in. For area’s that are a weakness for both partners, duties can be shared.

Downsides of Couples in Business Together

Lack of Breathing Room – You’re with your spouse virtually 24/7. You go to bed together, wake up together, eat together, and now you have to work together? Think about it first or else coupling in business together can become stale pretty quickly.

Business is Business – Sometimes separating business and personal life can be a difficult obstacle for some couples to overcome.  It’s tough sometimes to leave work at work, while focusing on empowering the family life at home.

I think there are many more upsides to partnering with your significant other, than the downsides that come with the same idea. Most importantly you will have a trusting partner, right from the get go, who will have your back equally as much as you have their back.

Finally, there is a great sense of security. We all have our tough days, but you’ll always have someone there to pick you up when you fall. Let’s hope that you don’t fall too hard.

Readers, would you ever start a business with your significant other?

Eddie

 

 

Three Worthy Websites For Every Start-Up

 

Starting a business is pretty tough. It’s sort of like your first day at school in a totally new school district. You’re the new kid on the block, and you’re unproven. Since you’re unknown, you must work much harder than anyone else to prove your self, show who you really are and install some confidence in others about the unknown you.

Most of the time to get over unproven hurdle, all it takes is that one kid to bring you into the inner circle. Businesses operate very much on the same idea, except in the business world the “cool kid” is replaced by one client.

Fortunately for businesses there is a lot of help out there, just waiting to be discovered. Here are three websites worth a look at start-up, no matter which industry your business will be a part of, there is something for everyone.

1. BizPal – www.bizpal.ca

Not all  government services were so user focused and well put together. Most of the government websites are confusing, and don’t give you the exact information you need.

Enter BizPal.

BizPal is a website that provides exhaustive information about the permits and licenses you need to operate your business. BizPal offers help on all three levels – federal, provincial and municipal.

This website has all the necessary information and tools to start, and effectively run your business.

2. CFA – Canadian Innovation Center

The Canadian Innovation Center’s Critical Factor Assessment Snapshot is a free, web based self assessment tool that weights your idea against eight other most critical factors of start-up success.

Once you complete the questions, this neat, and free tool will provide you a summary and most common ways to address the gaps identified in your venture.

3. Fundica – www.fundica.com

Based out of Montreal, Fundica is a one stop shop for helping entrepreneurs in search of capital. It’s sort of like a dating website, where you input the information about your company, industry you cater to, and annual revenue. If you don’t have any annual revenue, that’s okay too, Fundica will still provide specific sources of financing that are best for you.

These sources can be anything from grants, loans, tax credits and equity. They also have a $499 annual membership, which offer a lot of pretty neat goodies. On paper, it looks like a worthy investment.

Can you suggest any other websites for new entrepreneurs?

Eddie