Use a small, consistent set of categories
Choose categories that help explain your business, such as customer income, supplies, software, advertising, and outside services. Use the same category for the same kind of spending each month. Set aside uncertain purchases for review instead of creating a new category for every vendor.
Give each transaction enough context
A practical spreadsheet can include date, account, payee, amount, category, business purpose, and a receipt filename. Track income separately from expenses. If you use software, preserve the same supporting detail rather than relying only on the bank-feed description.
Follow the whole payment
For example, if a customer pays $200 and the processor retains $6, keep the record showing both the payment and fee. A $194 payout alone does not explain the sale. Treat this as a reconciliation example, not a rule about when a particular business must recognize taxable income.
Review the month against statements
Check each account for missing transactions and duplicates. Flag personal items, transfers, loans, refunds, and deposits for proper treatment. Keep notes on equipment purchases rather than assuming they should be treated like everyday supplies.
Hand over the questions with the records
Organizing an expense does not establish that it is deductible. Your preparer needs enough information to determine its tax treatment. A DFW service owner can make the review easier by separating customer-job purchases from general overhead and documenting the reason for mixed-use expenses.
Official references
Check current instructions for your tax year and circumstances.
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