Daycare.com Forum
Daycare and Taxes>Utilities Expenses
MommyD 10:17 AM 01-08-2011
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
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
legomom922 10:41 AM 01-08-2011
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!
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!
TomCopeland 07:58 AM 01-10-2011
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.
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.
legomom922 08:16 AM 01-10-2011
Tom, is it ok to scan everyhing and keep it on my computer and throw away all the papers?
MommyD 10:50 AM 01-10-2011
Thanks Tom for the answer! I appreciate all you do for us on this forum!
-Deanna
-Deanna
TomCopeland 10:33 AM 01-11-2011
Originally Posted by legomom922:
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.Tom, is it ok to scan everyhing and keep it on my computer and throw away all the papers?