Categorize Expenses
It’s important to keep track of both income and expenses for your business. When you stay organized from the beginning of the year, come tax time next year, you are much more prepared. I like using accounting software like Godaddy Bookkeeping or Quickbooks, but before I could afford to use those, I used spreadsheets to keep track.
I’ve created a google doc with sheets. Each sheet can help you track income and expenses. Feel free to print off the sheets and staple them to a folder and use that way or you can write them on the spreadsheet while online but make sure to keep the receipts and put them in a folder.
If you have a Gmail account, use this link to access the spreadsheet and it will prompt you to sign in to Gmail, make a copy of the sheet and this way you can edit and print.
If you don’t have a Gmail account, use this link and you can print only.
Now that you’re organized, take these files to your accountant or tax preparer.
Tips:
If you track your expenses, you’ll be able to make an educated guess at the end of the year on where you might need to cut back.
If you keep track of your income, note what type of products brings in the most income and then you can try to do more of those products.
Track everything. With a home office, you never know what might be deductible. For example, lawn maintenance if customers come to your house to pick up their products.
Julie,
I’m a member of the Wreath of the Month Club and The Success Group. In the Wreath of the Month Club, you gave us access to two spreadsheets. One called ” Supplies Purchased Worksheet “and Retail Price Calculation Worksheet”. I recently joined your success group and you shared with the group a booklet with multiple spreadsheets to help track income and expenses. I’m confused about which spreadsheet I should use to track my supplies purchases.
Use the planner. It has a place in the back to keep track of income and expenses.
My question: I have purchased a lot of supplies that have not been sold how do I calculate that amount to my monthly supply cost. This will show a loss for sure, so I’m not sure how i would add to the spread sheet. I hope this makes since. In other words before I opened my business I purchased a lot of inventory to get ready for the business and also since I have purchased more. So I did exactly what you said not to do but the damage is done now how do I account for it.
I’m not sure. That would be a question for a CPA or accountant. That would be you personally funding your business so it’s an initial start-up but since it’s not cash but product, I’m not sure how that’s handled tax wise.