Posts Tagged ‘save money’

3 Tips For Keeping Proper Tax Records For Your Home Business – And Keeping The IRS Happy!

The last thing most people think about when starting a business is doing taxes. But proper planning will make doing your taxes much easier – and keep the IRS happy!

Here are 3 simple tips for keeping proper records:

1. Whenever you buy anything for your business, keep the receipt!

Not only will this make record keeping a lot simpler, but if you are ever audited (having your tax return reviewed in detail by the IRS), you can prove your expenses, and save yourself money.

2. Write down all your expenses and income as they happen.

As your business grows, you’ll have more and more activities to keep you busy. The last thing you’ll want to do each April 15 is to organize your records for the year. So, it’s a good idea to write down all your financial activities as they happen. You’ll find preparing your taxes will take much less time if you are organized.

3. Learn how to save money on your taxes.

As you learn about taxes, you’ll find that there are many deductions (expenses that reduce your income, and therefore your taxes) you can take that are not obvious. When using your home office, you may be able to deduct (at least partially) repairs you make around the house, utilities, your home’s value at the time you start your business, and more.

The more you know about taxes, and the more organized you are in keeping records, the more time and money you’ll save at the end of every year!

What happens if you don’t keep proper records?

Individuals with small businesses are the most likely to have their tax returns audited by the IRS. If you don’t have a receipt, you will likely lose the deduction and owe the IRS money.

And while an audit does not have to be feared, you should be prepared – the more organized your records, the easier it will be to prove your case.

If you don’t have one, get a file box and some folders at your local office supply store (these supplies are deductible, so keep your receipts!) and create a filing system for your business. Put all your receipts in the proper folders, and put them in a safe place.

Another way to save yourself time is to record all of your business transactions – expenses and income – on a spreadsheet on your computer. Keep a column for income, advertising, supplies, etc. You don’t need to be a computer expert. But keeping accurate, organized records will help you save time when you fill out your taxes at the end of the year.

And it can help you plan, by giving you a snapshot or your financial progress whenever you need it.

Which may come in handy when you need to place ads, borrow money – or take a much needed and well-deserved vacation!

How to Save Money on Your Energy Bill

Is it just me, or have energy prices just been going up and up lately? Unfortunately, this results in significant increases in our home energy bills.

Fortunately, there are a lot of relatively inexpensive (sometimes free) changes you can make around the home that will save you money. I’ve put together a list of twelve tips that cover heating and cooling, lighting, appliances, and home electronics. These areas all tend to be notorious energy hogs. Let’s get started.

Heating and Cooling Tips:

1. If you haven’t already, switch to a natural gas water heater (electric water heaters use twice as much energy).

2. Whenever possible, cool your home naturally. For example, you can plant shade trees around your house (especially on the east and west sides). Their protection keeps the sun from beating on your roof and siding during the summer, which can naturally keep your home 4 degrees cooler. (Trees also help insulate your house against cold winds in the winter.)

3. Seal your house to protect against heat loss in cold weather. Seal the ductwork, close the fireplace damper when it’s not in use, and install a timer on the bathroom exhaust fan.

Money-saving Lighting Tips:

1. Use dimmers on all your bulbs, and only keep lights as bright as needed for your work. Instead of turning on big watt-sucking overhead lights, use task lighting when appropriate.

2. Use timers and motion- or heat-sensing lights outdoors.

3. Make the most of the natural light from outside. Consider skylights and well-placed mirrors, which can reflect more light into a room, thus reducing energy costs.

Home Electronics Energy-saving Tips:

1. Unless you really need ten clocks glowing greenly at you day and night, unplug TVs, DVD players, stereos, etc. when not in use (you can plug them into a power strip with an on/off switch to make this easy). 60-80% of the electricity used by these devices is sucked down when they’re idle.

2. Unplug chargers when you aren’t actively charging your cell phone, iPod, battery charger, etc. Why? Because as long as the plugs are inserted into an outlet, they’re drawing electricity.

3. Unplug or turn off your computer when it’s not in use. And in case you forget, set the system to lapse into sleep mode after a certain amount of idle time (sleep mode draws 60-80% less energy than full-power mode).

Tips for Saving Energy with Appliances

1. If your refrigerator was made before 1993, replace it. It could be sucking down $140 a year in electricity as opposed to newer models, which require significantly less. Today’s Energy Star-rated refrigerators only use about $20 of energy a year.

2. Do all your laundry on the same day, and dry the loads back-to-back. This makes use of residual dryer heat.

3. If you have a top-loading washing machine, replace it with a front-loading model. These generally use 50% less energy and 1/3 less water.

That’s all the advice for this article. Apply these simple energy-saving tips, and you’ll soon be looking at smaller bills.

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