Almost done! If you've completed parts 1 – 4 already, you're almost there! Tax time with your stampin up business will be a breeze.
This week we will tackle indirect expenses- things like car and utility costs that may be deductible from your business. If you are a hobby demonstrator, chances are you do no need to track indirect expenses. The amount you would be able to deduct is usually so minimal it's not worth the effort. Indirect expenses do not affect the Summary in Stamper Profit Pal, since the amount deductible is so variable.
Step 1: Open Stampers Profit Pal to the indirect Expenses Tab. Use the categories listed to help you gather the correct receipts for your automobile and utility costs (phones, electricity, gas & heating etc). Make a copy of the relevant ones and file them in your folder per month.
Step 2: Enter the total costs for each per month in Stampers Profit Pal. Depending on your business and the advice of your accountant, you may be able to deduct portions of these indirect expenses.
That's it! You're paperwork is done! If you plan on doing your taxes yourself, or using a product like Turbo Tax, you should be able to step through the program and simply input the information they ask for from your completed Stampers Profit Pal. If you use an accountant, hand him a printed copy of all four pages (Income, Direct Expenses, Indirect Expenses and Summary) and walk away with a smile!
How did this process work for you? Leave me some comments- next week- cleaning up and getting ready for the next year!!