# Tax questions



## SJSFarm (Jun 13, 2012)

I have started my own business, carpet cleaning. I'm a DBA and will file as a sole proprietorship.

I know I have to collect and pay sales tax. 

I have no employees or sub contractors- I'm a one woman operation! 

Can I use turbo tax? Will that system help me keep track of my expenses, mileage, purchases, ect? 

I also run ads in CL for house cleaning and pet/farm care and sitting. 

I actually started my business last year, but had just one job- and he stiffed me!

Is there a better records keeping system out there for my purposes? I have a laptop running windows and an iphone if that makes a difference in what I can use. 

Thanks so much for any info.


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## Kasota (Nov 25, 2013)

When I had my retail shop I used to use Quickbooks. That was some time ago. It worked well at the time - not sure if there is something better these days. I liked it because my accountant also used it and it made doing taxes easier for her. 

I know a lot of people who use TurboTax who have a business and they seem to like it just fine. I used an accountant because there were so, so many things to keep track of plus I had employees. The IRS doesn't have much of a sense of humor and it eased my mind to have someone else keeping everything straight and legal.


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## clovis (May 13, 2002)

You will need to fill out a Schedule C or C-EZ for your federal tax return. The C form is the first form you'll need to fill out before starting on any other form.

I've been in business since '93, and we still do our taxes the old fashioned way. We still keep all of our receipts in a box, and tally them at the end of the year.

The old fashioned way is not as hard as most think. We can do all of our tallying in one afternoon. Most people just want an easy way to do taxes, and opt for a program.

I always strongly suggest to any business owner that they understand the Schedule C form well enough that they can fill it out on their own. For those who can, they will understand what expenses can be deductible, and what are not. For instance, what is the mileage deduction rate for business miles driven? Let's say you need to hire some day labor for a job. Is that deductible? What is the limit on labor before you have to send a 1099? You want to take a client out for lunch. How much of that is deductible? You want to buy a new $30,000 piece of equipment. Is that deducible as a line item, or is it only deductible as a depreciating expense? 

Knowing these forms will help you make better business decisions, and will help you become a better business person. The average person on the street doesn't know jack about taxes, so I _strongly encourage you to learn the forms and rules for yourself. _


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## mistletoad (Apr 17, 2003)

I don't think turbotax is a full accounting program which is what you seem to be wanting.

I use QuickBooksPro - it isn't cheap but I don't buy all the updates (I'm still running the 2008 version, so it works out to about $30 a year for me). It has a section for entering vehicle mileage, as well as the usual check writing, billing, inventory tracking. I don't use all of the features, but the ones I don't use don't get in the way.

Peachtree (now Sage50) is another really good program, but it is more expensive than QuickBooksPro).

FreshBooks is a free program that I hear good things about - available on your phone or computer.

As a personal thing I do not like using tax prep software - I always fill out the forms myself so that I can see exactly what goes were. I then use a file online service, but I have my return to check their results against.


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## kimberlyg (Apr 18, 2012)

I use QuickBooks Pro now. When I first started out, though, I just used a ledger book. You should look at the Schedule C, then head your columns with the expenses listed on there that are relevant to your business. Do one page for each month. In December, total your monthly expenses on the 13th page to create a grand total.


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## ErinP (Aug 23, 2007)

clovis said:


> You will need to fill out a Schedule C or C-EZ for your federal tax return. The C form is the first form you'll need to fill out before starting on any other form.
> 
> I've been in business since '93, and we still do our taxes the old fashioned way. We still keep all of our receipts in a box, and tally them at the end of the year.
> 
> ...


I'm going to echo clovis. 
I always do my own taxes and frankly, I also think it helps me understand my business that much better. I DO fill them out via TT, but that's after doing them longhand on the paper Schedule C first, so I know I'm not missing something. 

You might keep receipts in specific envelopes. One for supplies, one for expenses, etc. You'll also want a small notebook of some sort devoted to your mileage--starting odometer, ending odometer, total miles, purpose for trip...


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## SJSFarm (Jun 13, 2012)

I'm using a expandable file folder for holding receipts, divided by month. I don't keep gas receipts because it's my personal vehicle (I don't have a truck mount). I do have the mileage on the customer receipt or on a toll receipt

I'm guessing I better go with a ledger to keep it in one place, but keep the receipts in case I'm audited!


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## MoonRiver (Sep 2, 2007)

Time is money. 

When I started my 1st business, I kept a journal and a box for receipts. Within 6 months, I realized I needed an accounting package. 

Why? Because it was taking too much time. Billing was pretty straightforward and didn't take that much time. Keeping track of inventory, purchases, and receipts was a bear. I was buying lots of parts that often cost less than $5 each.

For your business, I would thing purchases will be minimal. Probably 5 to 10 products that you purchase on a regular basis. The point I am trying to make is you probably don't need an accounting package right off, as long as you keep good records. Maybe use a spreadsheet.

Many accountants can feed Quickbooks into the accounting software they use for tax preparation So if you are going to have someone do your taxes, ask them what accounting packages can be imported into their system.

I would get a credit card that is dedicated to your business. Run all your expenses through the credit card. This will make things a lot easier. Say you loose a receipt. No problem, the credit card has a record of the purchase. Plus you should get a card that doesn't charge a fee and gives you 1-3% cashback.


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## kimberlyg (Apr 18, 2012)

At Staples or Office Depot, you can pick up a little book for your mileage log. That is a huge write off but kind of a pain to keep track of. It's worth it, though. You can also pick up sales order books there or you can use Microsoft office templates to create your own. Good luck!


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## SJSFarm (Jun 13, 2012)

I picked up a calendar where I have my appointments and any training. I will be totaling it up at the end of the month; purchases, earnings, sales tax, and mileage.

I really don't have much in the way of purchases- chemicals is pretty much it until I go through that 150 pair box of shoe covers I got at 2/3 off! I have all the equipment I need to do just about any flooring- or can rent at a local shop! 

By the way I LOVE THIS WORK. Talk about fun! Wow, I had no idea carpet cleaning could be so fun!

I am going to start a new thread. I want to rename the business and need ideas! 

Thanks all

I just put my "rename" thread in General Chat
http://www.homesteadingtoday.com/sp...32-help-renaming-my-business.html#post7069396


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