I know first hand the importance and challenges of keeping good records when it comes to having a home based business. That’s why I’m happy to share with you this post from Lisa Woodruff who has a great resource for you, and she’s offering it at a 50% discount for my readers!
How to systematize home based business income and expenses for 2016
Having run a home based business for over 20 years, you would think I have this tax time stuff down pat. Um no!
Last year, I disciplined myself to do my finances for my business all by myself DAILY! And this year tax time has been a breeze.
Each month, I would reconcile and do my tax prep on the 1st of the month. I actually started to look forward to it because I had created a checklist and form to fill out each month so I didn’t miss any expenses.
Each month, I knew how much I actually made. I was able to continually refine my process and reduce my expenses.
There are several statistics out there that state the percentage of home-based workers in 2020 will be 50%. And as a professional organizer, I know that paper organization is a hot button for most homeowners. So setting up paper systems that work are key.
This year, I had my graphic designer take my tax organization pages and turn them into adorable printables. Here is how I am organizing my income and expenses each month this year.
It is amazing how easily my mind inflates the income coming in and easily forgets the planned and unplanned expenses. Having a sheet to keep track of my income helps me make better decisions before I commit to more expenses.
I love watching the transactions increase as my business grows. These sheets are also helpful in seeing seasonal trends in my business.
Tracking my expenses month after month has helped me reduce redundant expenses and better use the services I am paying for. One of my biggest frustrations at tax time was not having my expenses organized to match the IRS Schedule C categories. This form tracks my expenses so I can transfer the numbers directly to my taxes next January!
Did you know business mileage is deductible at $.56 per mile?! So next time you “just run to the post office,” toss a quarter out the window every half mile. Crazy huh? I know. Once someone told me that, I started seriously tracking my mileage.
FYI, your calendar is a great documentation source for mileage tax deductions. I have my assistant take weekly screenshots of my Google Calendar for tax purposes.
4. Profit and Loss
I am ashamed to admit that last year was the first year in 20 years of business that I actually knew how profitable my business was every single month. Prior to this, it was a big surprise every February to see if I earned or lost money the previous year.
Keeping track of this number monthly had me making some BIG changes last year and ending the year with huge growth.
I have been following Toni’s blogging business advice for the last 3 years. As a thank you, I am offering YOU her readers a special price on my new income and expense tracking printables. I know Toni is a savvy business woman who wants you to be profitable, and these printables will help you know your business numbers and increase your profits. The regular price is $9, but The Happy Housewife readers price is only $4.50 through the end of February!
Here is your special link for The Happy Housewife 50% discount: Income & Expense Tracking printables.
This discount is good through February 29, 2016.
Lisa Woodruff is a professional organizer, blogger and podcaster from Cincinnati, Ohio. Her favorite things to organize are paper and photos. For practical daily organization advice visit. www.organize365.com.