JAYE'S BOOKKEEPING TIPS #8



The auto log-the bane of every businessman. The IRS requires a written record of your business mileage - whether the vehicle belongs to you, your company, or your son. If you use it for business, you have to keep a written record....





Buy an auto mileage record book - you can find them in any office store or office department in your favorite discount department store along with the calendars, appointment books and address books. Keep it in the car so you'll remember to use it.

The first entry you make is the beginning mileage so at the end of the year when you will record the ending mileage, you will have an accurate total mileage record.

When you leave your home office for business reasons, enter the beginning mileage and where you are going and why. When you get there, if you are going to also run some personal errands, write the ending mileage down. If you are going right back to the office, wait until you get there to write the ending mileage down. Those are your business miles. The IRS is very fussy about business and personal mileage so keep precise, accurate records!!

When January 1st rolls around, write the beginning mileage for the new year down (in a new book) and keep track of your business miles throughout the year. On December 31st, write down the ending mileage. The difference is your total mileage for the year. Add up your business mileage and subtract from the total, that is your personal mileage. Why do you need both? So your taxman will know what percentage of your driving is business and what is personal. It can make a difference on your tax return.

I can't emphasize enough to keep these records. Everyone hates doing it, but it has to be done if you are going to use your mileage for a deduction.

I know you are all thinking - another record to keep!! What is she going to come up with next?? Paperwork is essential, and as the bookkeeper, it is your job to convert the day-to-
day happenings of your business into figures to prove what happened.


Good records will save you tax dollars. Every taxman I have ever known would rather claim too much in income than too much in expenses. The reason? The IRS figures no one ever claims more than they made. Keep those records!!

Again, any questions or a sample Chart of Accounts can be handled through my email.

Jaye
jaye@strateshooter.com