Taxes and Bookeeping

[indiegirl]

I need to know what I need to do for taxes now that I am working for myself. I've been saving all of my receipts but don't know if that is enough.

Do you guys have any tax/accounting tips for a gal who is very mathmatically challenged?

I do have a bookeeper's services for tax season--when that comes around.

[Erin Pavlina]

All I do is open a spreadsheet in Excel. First column has the date. Second column has my income, the next my expenses. It's all totaled at the bottom. Easy, fast, etc. Then I just put in a note in the next column as to what the money was for. I use a new line for each new transaction, whether that's income or expense.

At the end of the year, I know what my gross income was and my net income.

I keep all business receipts, but those numbers should already be on the spreadsheet if you were accounting properly through the year. The receipts are just for if you're audited.

[LizHarrison]

I had quickbooks online for 2 years and I just got a new PC and with it I got the quickbooks pro..
It auto does my all my paper work for me and I just haev to print it off and bring it to my accountant.

I do save my rec. They are in a big box full of them just incase I ever need them
HTH,
Liz

[zealsmom]

Hi indiegirl,

In addition to keeping books with a computer program, we also set up an extra Money Market Business Savings account where we can put in an automatic 25% off the top of any income. That way, we won't get hit at the end of the year with a tax bill.

[Free Thinker]

I just use a spreadsheet format. I have Peachtree acct. software, but I haven't had a chance to figure it out, and I know how to work the spreadsheet. I recomend just a spreadsheet for now. I use a income and an expense notebook:
Expenses:

First col: Date
second : check number or type of transaction (CC, ect.)
thirdho to

then I have different columns for the types of supplies we buy (ex: payroll, payroll taxes, supplies, ect) It will depend on the type of business you have.

I do suggest getting one CC that you use only for business purposes, and one checkbook that pays that CC bill, as well as anything else you want to pay for w/ a check (office supplies, ect.). You might want to ask an acct. to look at your books around September so that if you need to change anything you can before the year ends.

HTH