I hate to be the bearer of bad news or bring up ugly subjects, but someone has to – in a word: taxes.
If you are typically a procrastinator each and every year when it comes to bookkeeping, make this year the year of change. Make 2014 the year you will be organized or at least have less of a mess to contend with before you file your 2014 income taxes.
Do you have a pile of 2014 receipts that need some sort of action? Whether you file your income taxes as a sole proprietor using a Schedule C or you’re an S-Corp or some other designation, income and expenses need to be tracked.
I’ve been audited by the IRS three (3) times for my Scentsy business since 2006. I come out okay but it is a royal pain and highly invasive. I keep meticulous records, but it is time consuming to do so. I do not have a fancy system, it is pretty basic; I don’t use any Quickbooks or other accounting software.
My Simplistic System
Here’s what I do, take what you like and discard the rest. I do have an accountant who I use and who pays my monthly taxes and payroll (I’m an S-Corp now) but the basic bookkeeping no matter what your business designation remains fairly similar. [Read more…] about Mid-Year Tax Tips for Direct Sales Consultants