Questions answered by tax and business professionals.

Record the date, destination, business purpose, and distance for each trip, along with total annual miles when relevant. Rules and rates can change by year.

Petty cash is a small amount of cash reserved for minor business purchases. Record each use and reconcile the remaining cash to the log.

Track deposits separately until the work or sale is completed under the applicable accounting method. Tax timing can differ, so confirm the treatment with a tax professional.

Link the refund to the original purchase or expense when possible. Review whether sales tax, inventory, or an asset balance also needs adjustment.

An uncleared transaction is recorded in the books but has not appeared on the bank statement. Review older items for errors, duplicate entries, or outstanding payments.

Yes. A bank statement shows a payment, but often does not show what was purchased or its business purpose. Keep the underlying receipt or invoice.