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  Keeping a good accounting system is paramount--especially when tax season rolls around. The IRS can perform an audit, or an inspection of your or your businesses' books and records to ensure that the tax information you file is accurate. Following a few guidelines can help save money each year and prepare you for a spontaneous audit.
  
  

Track Your Losses

• Tracking your business losses and personal work related expenses saves you money in the long run by allowing you to claim a greater deduction. Small businesses can claim losses from up to five years prior greatly reducing their tax liability through a five-year carry-back deduction. Make sure your accountant tracks the amount of your carryover deductions. For personal losses, such as unreimbursed job related expenses, keep receipts and file then in a secure folder, box or bag where you can easily access them later. Writing a quick note on the top of what the expense is and how it is job related saves you time later when working with your CPA.
  
  

Analyze Data

• While keeping records is important, it is important to analyze your tax situation annually. Look over your past year deductions and take note of areas where you might be able to depreciate items. When items are 100 percent deductible, you may have the option to depreciate the item over the course of several years. The kinds of property that you can depreciate include machinery, equipment, buildings, vehicles and furniture. Unfortunately, you can't claim depreciation on property held for personal purposes.
  
  

Avoid Common Mistakes

• Avoid common mistakes when preparing to file your taxes. A long list of deductions must be met with accurate income reporting. Remember to include income not listed on your W-2s and 1099 statements even if you are not a business owner. Failure to report and pay domestic payroll taxes such as employing a housecleaner, in-home caregiver, nanny, etc. Document your payroll expenses and amounts as you may be subject to employer tax. Also, even if you are due a refund, the IRS requires that you file taxes.