Monday, February 27, 2012

Day 24 Get Your Finance In order and Prepare for Tax Time.

Today’s Task:   Create a system to organize your business finances.            

I keep track of the questions that I get asked by other consultants.  Over the past 2 months the number one questions I have been asked is.  “What can I deduct on my taxes?” 

Today you are going to get organized so next year at tax time you will be ready. 

There is another reason to get your business finances in order, it is easier to plan.  If you know how much you are spending you can evaluate (or create) your business budget.

I am NOT an accountant.  Please contact a CPA for specific business finance and tax questions.  Today’s task will hopefully answer some of the basic questions and help you get organized. 

What to keep track of for taxes
• accounting/legal fees related to the business
• startup expenses (e.g., organization costs to register the business)
• business licenses
• home office expense (be able to give a total spent on utilities, rent/mortgage, taxes, maintenance, etc., then at the end of the year we prorate based on square footage)
• miles -- I track this on my calendar and use Google maps to calculate mileage
• incentives you offer your team
• copies, price lists
• print costs business cards, etc
• booth fees for expos
• personal Q, its a required business expense, you have to have a $50 product Q to stay active
• office equipment, computer, printer, ipad
office supplies, paper, stapler, white board
• marketing material, banners, brochures
• cell phone bill
• postage for sending out host packets or anything else SR related.  
• lunches out with potential consultants or customers  
• With the meals/entertainment (within 30 minutes of a business meeting)

Today’s Worksheet: 

Today's’ task is for you to create a system to organize your business finances.  You can use my method (see below) or anything that works for you.  Choose a method and stick to it. 

What I do:
I have a binder with a divider and envelop for each month.  I keep track of my finance by month and category. 

Here is what my system looks like: 

Want to make your own?

You need:

12 copies (one for each month) of  Monthly Expense Record
12 Envelopes (to put receipts is)
3 ring binder—or file folder (to organize it all)
Hole punch

Write the name of each month on each of the monthly expense records.
Staple an envelope to the back of each month.
Punch holes in the side of everything
Insert into the binder.

     Today’s Notes 

Keeping track of your expenses monthly helps you remember all of the expenses you have had.   It is especially important to keep the receipts (which you will not be able to find next year when you are trying to do your taxes.)

How do you organize your business finances? 

No comments:

Post a Comment