One of my biggest frustrations at tax time was not having my expenses organized to match the IRS Schedule C categories. Tracking my expenses month after month has helped me reduce redundant expenses and better use the services I am paying for. These sheets are also helpful in seeing seasonal trends in my business. I love watching the transactions increase as my business grows. Having a sheet to keep track of my income helps me make better decisions before I commit to more expenses. It is amazing how easily my mind inflates the income coming in and easily forgets the planned and unplanned expenses. Here is how I am organizing my income and expenses each month this year. This year, I had my graphic designer take my tax organization pages and turn them into adorable printables. So setting up paper systems that work are key. And as a professional organizer, I know that paper organization is a hot button for most homeowners. There are several statistics out there that state the percentage of home-based workers in 2020 will be 50%. I was able to continually refine my process and reduce my expenses.
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.Įach month, I knew how much I actually made.
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.Įach month, I would reconcile and do my tax prep on the 1st of the month. Having run a home based business for over 20 years, you would think I have this tax time stuff down pat. How to systematize home based business income and expenses for 2016 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! I know first hand the importance and challenges of keeping good records when it comes to having a home based business.