As I mentioned in my last post, I had a lot of business expenses in 2011 that I was unaware of until I went back through my PayPal account and added up the numbers.
I’m sure many internet marketers get a sick feeling when tax season rolls around – especially if you haven’t kept good numbers or if you haven’t been paying your taxes quarterly.
Keeping Good Records is Your #1 Defense Against Getting Audited
I found the following video via twitter today and it is brought to you courtesy of Sean Ogle at Location 180.
If you run a home based online business, then I urge you to watch this video interview. Lots of great tips on how to get set up and keep yourself organized when it comes to doing your taxes. If you plan things out beforehand, you’ll save yourself a lot of headaches in the end.
One interesting stat from the video mentioned that people that make over a million dollars a year are much less likely to have to pay penalties and fees when being audited when compared to people making less than $200K. The reasoning being is that they have to money to pay someone to properly keep their books.
If you follow the steps in this video, you might be able to avoid making mistakes on your taxes.
If you don’t have time to watch the interview, I’ll mention that Kyle Durand is the subject of the interview. He is a tax attorney and tax accountant – and also the brains behind taxreceipts.com. The site has a ton of free info that will help you prepare your taxes for your online home based business. Check it out if you have any questions regarding what you can and cannot deduct as business expenses on your taxes.