It is the start of a new year and time to make certain that your bookkeeping is up to date for 2009 and that you are ready to tackle 2010.

1) You should have some type of inventory in your home even if most of your sales are over the internet. Be sure to take a physical count of that inventory and value it at your cost.

2) Take an ending odometer reading on the vehicle that you drive for business. If you use more than one vehicle or you traded vehicles mid-year, be certain to get the ending reading on all vehicles. You should also have a count of the total business miles driven in 2009. Depending on many variables, you can either take a standard mileage rate of $.55 per business mile or a percentage of the total expenses. You cannot take both.

3) Start a new check register for 2010. You should have a separate bank account that you use for business. File your 2009 check register with the copies of the 2009 bank statements and cancelled checks.

4) Pull all of the expense files for 2009 and put them into a storage box along with the checks and register and any other material. Mark the box “2009,” put in onto a storage shelf and if you are not audited, shred everything in the box after 4/15/2014.

5) DOCUMENT, DOCUMENT, DOCUMENT – please sure that you have receipts and/or cancelled checks or credit card receipts for all business expenses. Be sure to write on the receipt the reason for the expense.

6) If you are using a paper daytimer or calendar, be sure to buy a new one and file the old one into your 2009 box. If you are using an electronic calendar, be sure to print out a hard copy of your calendar and stick it into the 2009 box.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.