My Dad is a bookkeeper.
He says, you have to prove all your expenses and if you can't it looks like you made more money thus you pay more tax on the perceived higher income.
Being organized we can see if and when an expense is missing and find it in time for your next tax return.
Example:
You made $100 and then you spend $90 this means you only have to pay tax on $10 since that is your profit.
But if you can't prove you spend $40 of that $90 because some of your receipts are missing.
IE You should claim $90 in expenses but you can only prove expenses of $50. ($90-$40 which is $50).
Now It looks like you have made $50 profit ($100-$50=$50) and now you have to pay tax on $50 while you should really only pay tax on $10.
That is four times more TAX than what you actually owes.
Most of the time you misplace the receipts because you don't know where to put it or you have too much papers and don't know what to keep and what to trash.
Dad has a newsletter that gives you free tax tips like these, all legal.
Anyway, sometime ago I wrote a story about my dad's plan to pay for my education with technology (Bitcoin & steem).
As you tag along with me, let me tell you the story. Click here to read it: https://steemit.com/introduceyourself/@becky.rac/why-does-jeff-always-say-things-like-this-to-my-dad.
