Q.3 EACH YEAR MY ACCOUNTANT asks me to sit down and list all my business expenses to prepare for my Income Tax Report. I hate that because I don't save all my receipts and I thought a lot of them didn't matter anyway. When I told him that, he said everything matters and should be considered. I don't think I earn enough to worry about it anyway. What's your view?
A. WE GO WITH THE ACCOUNTANT: Everything is important to consider and list, and let him determine whether or not it may be a deduction. That's why he got his degree in accounting. Although many new software programs make it easier for laymen to prepare their own IRS form, most professionals believe you probably will save money by spending some on an accountant. As for keeping close records, we're fortunate that bank credit cards now offer "year end credit card summary online" that help recall even the small expenditures.