Taxes... the downside of business!

I just got my Business & Occupancy taxes in before the deadline, which is tomorrow!

Every year, I dread doing taxes. We go to a CPA, but just getting everything together seems to be a real pain, and one of the downsides of having a business.

I've tried using those "Simplified Monthly Bookkeeping Records" (spiral bound book available at Staples), spreadsheets, Quick Books and I just can't seem to keep receipts and junk all together to facilitate taxes. In an effort to clean off my desk, I've just now realized I've been burning receipts from my trips to Seattle and such. *sigh*

So, I thought I would ask and see if anyone has a great method that works for them!

Sheri

Sheri said:

I just got my Business & Occupancy taxes in before the deadline, which is tomorrow!

Every year, I dread doing taxes. We go to a CPA, but just getting everything together seems to be a real pain, and one of the downsides of having a business.

I've tried using those "Simplified Monthly Bookkeeping Records" (spiral bound book available at Staples), spreadsheets, Quick Books and I just can't seem to keep receipts and junk all together to facilitate taxes. In an effort to clean off my desk, I've just now realized I've been burning receipts from my trips to Seattle and such. *sigh*

So, I thought I would ask and see if anyone has a great method that works for them!

Sheri

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I have a great one! I keep a pen in the car. Every receipt I get I write on the back of it what it was for, and when. I toss them all into a 5 manila envelops I keep at home for the tax year. If I forget for a day or two it does not matter because the back of the receipt has all the info I need to know where to put them when I do empty my pockets or wallet. Gas/car, food entertainment, office/equipment, miscellaneous/ hail Mary receits.
Come tax time I total each envelop and write off things accordingly, or in your case send those envelops off to your accountant. He can take it from there! It works because it is simple and easy.

Sheri said:

So, I thought I would ask and see if anyone has a great method that works for them!

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In Australia there is a software package called Etax.

Every time you do a transaction, ude your keyboard and enter it in, pretty much instead of a till. then at the press of a button it organises your records and automatically lodges with the Tax Office. It's a good little thing, and I believe there' a Mac version floating around, too.

I'm kind of a mess when it comes to those things that are "write offs!" I take the receipt, write the where/when/what on them and throw them in a drawer.

At this time of year (tax time) I total them up in categories, meals, travel, education, conferences, etc. Then staple each category together and take the totals to my CPA.

For things that I do not receive a receipt for and my income, I maintain a spreadsheet. I also split these items out and give them to the tax guy.

As an example of things that you do not receive a receipt for...your fees to work a venue, tips that you've given the front desk people, things you've donated for raffles, your mileage...I know there are more, but this is just off the top of my head.

Hope this helps.

Well... I did taxes for several years at one of the big chains. I was one of the few who actually did them for small businesses, rental property, business use of the home, odd stuff.

The crowned one has a good plan unless you are willing to put it into a computer program right then. Of course you still need to keep the receipts. I would actually figure out what categories you need and put the receipts by category so there is less to separate at the end of the year. Even if you do this once a month.
Also... do you have a dedicated area for business in your house?

Feel free to PM if you like... oh and I guess I forgot to see if you are even in the US...

SJ

Hi Souljourney

I do have a place in my house for my business, but I also have an office in town as I don't feel comfortable having strangers in my house. My house has the computer and everything except what I need for readings. My office has all my reading stuff -- and no computer.

I'm a bit upset that I haven't saved all the receipts from last year, but I do have the transaction record on my credit/debit card or check duplicate. At least, this year, I can start with a system fresh with the new year! My husband got me what looks like a small Moleskin journal, but when you open it, it is a fan file! It is a bit larger than a large Tarot deck and perfect to carry around. I think I will use it for storing receipts in when I travel... right now they are all stuffed in my wallet. I'll be able to categorize them in the Moleskin.

Tomorrow, I am setting aside some time to get organized and work out a system for getting the receipts from the Moleskin to my files.

Sheri

Sheri, they've got the cutest little bitty laptops now that will fit into a purse. One of those would be ideal for you because you could always have it with you and enter information on the spot. Then have your little organizer fan file in your purse, too, and pop the receipts in there. Off you'll go, simple and quick.

There is no easy way. The biggest thing is keep the business and home stuff separate. I put all receipts in my purse as I buy things then make a note of them in my spread sheet every few days. Its a pain, but it is bigger to do it at the end of the year.

The biggest thing is keep business and home expenses separate. I have separate credit cards, checking accounts and even e-mail addresses! It doesn't cost any thing extra, but it makes a DIFFERENCE.

Ace said:

There is no easy way. The biggest thing is keep the business and home stuff separate. I put all receipts in my purse as I buy things then make a note of them in my spread sheet every few days. Its a pain, but it is bigger to do it at the end of the year.

The biggest thing is keep business and home expenses separate. I have separate credit cards, checking accounts and even e-mail addresses! It doesn't cost any thing extra, but it makes a DIFFERENCE.

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I agree. Separate checking account with a debit card keeps track of all money made and money spent on business.

I agree on a seperate checking account! I keep all my printouts for the year and it contains copies of all the checks I wrote out on my business account. I only do business through this account and you wouldn't believe how easy it is to go through it at the end of the year and see what I deposited and spent on everything. Then tally up your rent, supplies, etc, from your gross earnings (deposits) I keep a drawer full of reciepts, but never have to look at them if I know that I purchased everything through this account.