OT Sort of: Tax Records for Business Purposes

September 30, 2004

If anyone here runs their business from home can you please advise of a good

record keeping software or system that you use to document inventory, income,

expenses, basically anything you would need for tax purposes?

Also, when you have a shopping cart on your website is there a way to end up

downloading sales by breakdown for tax and shipping as well at any point during

the year?

And finally, anyone who is willing to share either on or offlist: do you

absolutely keep a separate bank account for the business? I don't know how

strict the rules are (there may be a law and I don't know about it) about

maintaining a separate account.

As a background to why I'm asking these particular questions. I accept a lot of

barter for my services as an educator and doula. Therefore as far as ever

really earning any actual cash it's always been right around the $3K mark. I

think bartering is a great system - it's how I got my huge trees that might have

fallen over on the house w/ all the rain this year out of my yard complete down

to the stumps very affordably this year - but that's another message thread.

So, with a cash amount of only around $3K and probably spending 1/3 of that on

business expenses every year my accountant never had me file it on any returns.

Oh, one more thing...I'd gotten paid in cash a lot, not checks or anything like

that and very few people are able to have my birth classes expense reimbursed to

them so they've rarely asked for any receipts. Maybe twice a year I hand one

out.

This year however I'd like to make the business official as I am currently

preparing a new website, new business cards, real ads in local papers, real

inventory for birth supplies for sale, etc.

Any guidance would be appreciated. I'm sure there are many other business

aspects I've not considered (for instance do I incorporate???).

Dale

September 30, 2004

" Dale " wrote:

> If anyone here runs their business from home can you please advise

of a good record keeping software or system that you use to document

inventory, income, expenses, basically anything you would need for tax

purposes?

>

> Also, when you have a shopping cart on your website is there a way

to end up downloading sales by breakdown for tax and shipping as well

at any point during the year?

>

> And finally, anyone who is willing to share either on or offlist: do

you absolutely keep a separate bank account for the business? I don't

know how strict the rules are (there may be a law and I don't know

about it) about maintaining a separate account.

>

> So, with a cash amount of only around $3K and probably spending 1/3

of that on business expenses every year my accountant never had me

file it on any returns. Oh, one more thing...I'd gotten paid in cash

a lot, not checks or anything like that and very few people are able

to have my birth classes expense reimbursed to them so they've rarely

asked for any receipts. Maybe twice a year I hand one out.

>

> This year however I'd like to make the business official as I am

currently preparing a new website, new business cards, real ads in

local papers, real inventory for birth supplies for sale, etc.

>

> Any guidance would be appreciated. I'm sure there are many other

business aspects I've not considered (for instance do I incorporate???).

>

> Dale

Hi Dale,

If you want an excellent small business software that will grow with

you, is easy and does *everything* that you will need.... I *HIGHLY*

recommend Big Business. Their website is www.bigbusiness.com

If you want to do things right, I cannot say enough good about them.

I love their software, their options and all of their wonderful help.

Definitely have a seperate business account. I actually have 2. One

is the main account and then there is another checking account. I

don't think you really need two. I use it for organizational reasons

(certain things get paid out of each account and *all* monies go into

the main account and some gets transferred to the 2nd account... Now

my husband has 4 for his practice. Don't ask me though, I don't work

there anymore!) When money is flying in and out of accounts, you need

to keep track of it in a separate business account. I cannot relate

to you the amount of headache you will save yourself if you have a

well-maintained business account. It enables you to have everything

in order at tax-time (and God forbid, if the tax men come a-callin'!)

Now, as to your accountant not claiming that $3000... that definitely

would not be what I would do!!! Even if it makes no difference in

what is owed/received back, it should be claimed *for your own

family's safety*. I am not a gloom-and-doomer, but the IRS is not to

be messed with. I would not want any of that sh** coming down on my head!

Keep good records, keep things in order and run it legit and you will

still flourish and prosper --even more so because you won't have any

attention on " those " things. You don't need to add any worry when you

are running your own business. It's really bad for business!

Bartering is great! I love it. My husband does it even in his dental

practice (it's a great way to get cars worked on! and also to get

beautiful Lotton Art Glass! Okay, only got this one time, but we are

so lucky to live/work close to their studios... stunning!) Your

accountant will know/should know what to do regarding bartering. I

almost want to say to tell your accountant to play by the rules or

find a new one. He is actually playing with your family's well-being

because *you* are the one they are going to look at.

As far as incorporating, there are some excellent web sites that

explain all of the various types of business ownership and

incorporating. You need to look these over and decide which is best

(re: costs of incorporating/tax benefits.... there is quite a bit to

consider). I used to have a great site that listed all of the various

types and what they mean to you --all of the same page-- and then you

could also go more in-depth. I don't have it anymore, but just do a

search. I think it was under a search for " small business " information.

Good luck, I wish you well!!!

Andrea

September 30, 2004

I use Craft Assembly and Inventory System. I love it. I do my whole

business through it, from not only keeping track of how much profit and

loss, but inventory control, when I need to reorder, tracking my orders, it

is a great program and not a bad price at all. It is marketed by Corporate

Edge Software. Cindy

Blessed are those who can laugh at themselves for they shall never cease to

be amused...Anon

coming soon: http://www.smoothscentsations.net

Andrea [itsmedrea1]

Thursday, September 30, 2004 8:00 AM

Re: OT Sort of: Tax Records for Business Purposes