Get Prepared To File Your Taxes

Even though Tax Day is the same every year, it seems like it sneaks up on me even though I try to be as organized as I can during the year with my receipts.  Running two business can make tax prep a little bit hectic.

There are a lot of ways to keep track of your business expenses through out the year and stay on top of your tax preparations.

The important thing isn’t what software or system you use, the important thing is that you do it.

I’ve created two Excel spreadsheets with multiple tabs on them.  One for piano expenses, one for eBay expenses.  I try to enter my receipts in at least twice a month.

I have a friend who’s husband is a CPA and he’s been a HUGE help to me with knowing what to keep track of and he even told me a few things to deduct that I didn’t know I should be deducting.  So, when in doubt, talk to your CPA.

Here are some ideas for you on what you can keep track of through out the year for your taxes:

  • Inventory
  • Tape
  • Bubble wrap
  • Boxes
  • Tissue paper
  • Poly Mailers
  • Bubble Mailers
  • Brown Paper
  • Mailing labels
  • Printer paper
  • Digital camera
  • Printer Ink
  • SD Memory Card
  • Office equipment purchased this year. (Postal scale, printer, computer, desk, etc)
  • Postage (I run a report at the end of the year on paypal)
  • Postage stamps
  • Mileage to the Post Office, Mileage to yardsales, thrift stores, etc (Make sure you have a mileage log)
  • Selling fees (eBay, Etsy, Addoway, Bonanza, Amazon, etc)
  • Paypal fees
  • Internet service
  • Portion of rent and utilities based on the percentage of your home that is used for business.

This list is not exhaustive, there are other business expenses that can be deducted based how you run your business.  Hopefully, this gives you a starting point of ideas to start your spread sheets and get a head start on next year’s tax prep.  The best source for an exhaustive list is your CPA.

Rachel

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