Daycare.com Forum Daycare Forum

Go Back   Daycare.com Forum > Daycare and Taxes

Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

Reply
 
Thread Tools Display Modes
  #1  
Old 01-08-2011, 11:17 AM
MommyD's Avatar
MommyD MommyD is offline
Daycare.com Member
 
Join Date: Aug 2010
Posts: 40
Default Utilities Expenses

I have quickly searched through this forum and did not find the answer to this...

I see in MMK where to put in Utility Expenses and know to use T/S %, but what I am wondering is if I then need to save a copy of every water/sewer and gas/electric bill for the year? Do I only have to save a few, since one is on the "budget plan" and the other is relatively the same monthly?

How long do I need to save them, if I do need to save them?

I have all the receipts for other things (toilet paper, fence, etc.)

Thanks!!
Deanna
Reply With Quote
  #2  
Old 01-08-2011, 11:41 AM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

What I think, and I am no expert, is that it would make sense to keep all of the bills for every month you were in business, just *in case* of an audit, you would need to prove to irs that those were your expenses. Better to be safe than sorry, because if you could not prove them, they may not allow you to claim them.

Do you have acess to them online? Because you could do one of two things:

1. If you have online accts, you would have acess to your bills, for how long, I dotn know, every company is different.

2. Do you have a scanner? I just got one for Chrsitmas just for DC purposes. I can scan every reciept, bill, etc, and I have no paper to store anywhere! So I dont have to worry about a bunch of papers taking up space. I would only need to show them to an auditor and they can easily see them on my computer files.

I dont know know how long we have to keep them, that is a good question. Maybe Tom can answer that one!
Reply With Quote
  #3  
Old 01-10-2011, 08:58 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default Utility bills

You definitely need to save all your energy bills for each month, not just a few, even though you are on a budget pay plan.

You need to keep all business receipts for at least three years after filing your taxes. Some states require you to save receipts for four years, so be safe and save everything for four years.
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #4  
Old 01-10-2011, 09:16 AM
legomom922's Avatar
legomom922 legomom922 is offline
Advanced Daycare.com Member
 
Join Date: Jul 2010
Location: FL
Posts: 1,021
Default

Tom, is it ok to scan everyhing and keep it on my computer and throw away all the papers?
Reply With Quote
  #5  
Old 01-10-2011, 11:50 AM
MommyD's Avatar
MommyD MommyD is offline
Daycare.com Member
 
Join Date: Aug 2010
Posts: 40
Default

Thanks Tom for the answer! I appreciate all you do for us on this forum!
-Deanna
Reply With Quote
  #6  
Old 01-11-2011, 11:33 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default Save receipts?

Quote:
Originally Posted by legomom922 View Post
Tom, is it ok to scan everyhing and keep it on my computer and throw away all the papers?
I wouldn't throw them away. I don't have enough experience with the IRS in audits to know if having only computer records will be okay.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Tags
expenses, utilities

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
MMK, Expenses, T/S% Question?? Lisa4kids Daycare and Taxes 2 01-23-2011 09:08 PM
Stumped-MMK Expenses Input Question legomom922 Daycare and Taxes 12 01-17-2011 09:54 AM
Utilities Expenses for Tom Copeland llove530 Daycare and Taxes 1 01-11-2011 11:28 AM
New Daycare And MMK - When To Start Recording Expenses? Christophina Daycare Center and Family Home Forum 5 12-30-2010 06:10 AM
Explaing Expenses to Parents melissa ann Daycare Center and Family Home Forum 18 12-18-2009 05:15 PM


All times are GMT -7. The time now is 12:57 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming