What to do w/receipts

[tomoaktree]

I've been lazy all year and have two boxes full of receipts. What's a good way to organize/categorize them? By month? By vendor? Both? Other?

How do you keep track of your expenses?

[KDJ]

In you're profile it looks to me that you have been in business for 16 years. If that is the case this is what you should do.

Find a good tax consultant. This person MUST be full service, meaning. A tax Attorney and CPA with the ability of Tax representation in the I.R.S. court. This is a must!

Follow there advice to the letter.

Good Luck

[Stonewall]

I file mine in categories that I use on tax reports.

[Fine Lines Lawn]

I file mine by vendor.

[Lawn-Scapes]

Do you guys save all your receipts? I've only kept cash receipts. If I write a check or use credit card I trash 'em.

[LoneStarLawn]

Originally posted by TSG
Do you guys save all your receipts? I've only kept cash receipts. If I write a check or use credit card I trash 'em.

We don't use cash.We keep all reciepts, but we really do not need to keep them since we use our checkcard associated with our bank. With that we receive a summary of all expenses and deposits for each month.

[Guido]

manilla envelopes and label them in big letters with a marker for all the expense accounts you use to track your expenses.

i.e. truck1, mower2, trimmers, utilities, etc.

Keep them in there with the year clearly written and close them out at the end of the year. Put them in the box and throw them in the attic.

Not sure what your laws are on how far back to hold on to the stuff, sorry!


Hope this helps, its better than a shoebox and cheap too! ;)

[SprinklerGuy]

Manilla envelopes labeled by month........not in attic though, garage.

[tomoaktree]

For you guys that categorize by the month..... do you log everything on a spread sheet for that month? Does anyone use spreadsheets to keep track of expenses?

Has anyone developed a system to easily find any receipt ?

Just trying to get more organized , thanks for the input.

[Ric]

We use QB pro. Break out record by item and job. We are able run P & L on each area of the company. Lawn mowing, Landscape, Trimming, Fertilization and pest control. The monthly P.L. for each area let us know if we are making money or not and where to put our focus. I got lucky and turned one of my retired customers into a partner. He does not know grass from trees but has the sharpest penical in town. He jointed me for something to do, not cause he needed the money. I used the shoe box system for years and worked real hard at spinning my wheels. I can not tell you how much a sharp penical will improve the bottom line. But I can tell you a sharp penical will make you (keep you) money.

[Guido]

Originally posted by tomoaktree
For you guys that categorize by the month..... do you log everything on a spread sheet for that month? Does anyone use spreadsheets to keep track of expenses?

Has anyone developed a system to easily find any receipt ?

Just trying to get more organized , thanks for the input.

Tom,

How are you keeping books right now? Have you ever looked into some affordable software like QuickBooks? It would help you out a lot I think. Very easily organizes all the info you would need to pull up for various reasons.

[SprinklerGuy]

Tom, you make it sound like the shoe box method is "wheel spinning". I thought the original request (post) asked about a place to keep the RECEIPTS. Believe me, the shoe box or bankers box works great.

However, that is AFTER the receipts have been entered into my accounting software. It automatically categorizes the expenses. We use Peachtree Complete, but QuickBooks is great too. Don't do double work, use your accounting software to it's full potential. You can create reports telling you how much gas truck #5 used in January of 1999 if you want.

Of course this is all provided that the information was entered correctly initially. Noone can really help with that!

Don't make a program (spreadsheet) that you don't need. Enter the info ONE TIME and then it will always be there to retrieve in many forms.

[tomoaktree]

Thanks Guys,

I just bought QB along with my first computer this year. Aparrently , I still haven't figured it all out yet.
I write all my checks associated w/bus in QB. I do make alot of purchases outside of QB that need to be recorded. eg. home depoe , gas , nurseries etc.
I bought a new powerwasher at Home depoe that needed repair. I went nuts trying to find the receipt for the warranty work.
Every year I'm stuck with a pile of receipts and have to sort through them. I realize this is not a good way to conduct business and am trying to find a system I can stick to throughout the year to make it easier come tax time and also to become as organized as possible.
I'm also going to look into getting that Standardized Chart of Accounts , Guido was talking about.

[AltaLawnCare]

I use manilla envelopes for every two months, "Jan/Feb 01",.. "March/April 01",... ect. I lay all the receiptrs for the week on my computer desk, at the end of the week , usually Sunday morning, I enter them into a weekly organizer/planner (manually), any checks are entered into Quicken. Then I file 'em.

I only use cash on gas, and anything under $5.00.

[1grnlwn]

My process.

1. Pay for item with family GM card ( 5% off next truck)
2. Put receipt on desk.
3. End of month enter all CC receipts in Quickbooks Pro
4. Put receipts in envelope marked (month/year)
5. Pay for business items GM card with check from QBs (we send two checks 1 bus 1 personal every month. (Always pay full amount).
6. Put monthly envelopes in shoe box.

Any time you need a specific receipt you go to QBs and do history on vendor or expense acct. find month and year of purchase and go to that envelope and get receipt. Works fine and is simple.

[1grnlwn]

I forgot this. I believe it is in repressed memory. But several years ago I took part 1 of accounting class. Its boring, confusing, and very anal. You will forget most of it. All that being said, It kind of left me with an understanding of why this $#!t is important. When I talk to my accountant I am still confused for several moments and then the bell rings. Believe me you don't want to be payin these guys $60-$120 / Hr. To explain simple stuff to you. It was worth the money and pain. My 2 cents.:cool:

[Ric]

Tom

For years the lower left drawn of my desk has every manual etc. of every piece of equip I buy along with the recept. If it breaks I know right where to find what ever I need 800#'s repair info etc.

Each landscape job has it own file folder with all recepts from that job along with the proposal and a copy of the final bill-bills.

Every thing else is filed by ventors but recorded in QB by Item. ExSample would be a Lesco bill for $100.00 is filed in Lesco file but entered in QB as $10.00 mower gas&oil $60.00 fertilizer expense. $30.00 pesticide. This gives me the ablity to know how much I spend with Lesco each year so I can get a better price next year. And also I know how much I spend on gas & oil each month from all suppliers. I have 3 trucks and a car. Each has it own gas & oil account as does the mowning Equipment. QB can print you a P & L at any time. The bigger you are the more control you must have. The truth be known as a one man shoe box operation I kept more money. Growth is expensive and how much control you have will help you deside if growth is profitable.

I am posting back to you because I am making the jump from shoe box to file cabinets this year and will install more controls Jan. 2002. In my earlier post I said I have a partner and this is his end of the bus. He makes me account for every penny I spend and jumps on me real hard if I forget a dime. But this is his job and business is business. Those who get a head are cold hearted and by the numbers. This is a lot work and only you and your Account can deside how much control you need.

Good Luck
Ric

P.S. I can't spelllll But 2+2=5

[GroundKprs]

All of your business tracking should be done by software. The physical receipt is only needed by you until you have properly entered it into your own software for accounting purposes.

Of course, you must organize your accounting software to record data properly. Then you will be able to retrieve any possible data from software only. e.g., a $100 Lesco purchase includes $25 of mower parts, $50 of fertilizer & $25 of weedkiller. Even in a simple program like Quicken, you can record the payee as Lesco, and split the amounts into appropriate categories. If you want to know how much you spent at Lesco last year, you just do a payee report. The receipts themselves are not now necessary at all for you to organize your business.

However, you must hold justification for your expenses for several years (varies sometimes from state to state) in case you are audited on a state or federal level for various activities (taxes, pesticide useage, RUP detail recording, etc.) In this respect, the storage of your receipts is just whatever you feel fits your needs. I would hate to spend days organizing a boxful of receipts, from all of 1999, to meet with an IRS auditor on my 1999 tax reports. I will (staple, bundle, box) all receipts for a month together, then all the months for the tax year are stored together in a (bundle, box, other container). That way any receipt(s) can be found, if needed, in the future with minimal searching; but I am not wasting time keeping a finely organized receipt filing system. If a receipt is needed for a warranty claim, the purchase date is found within 5 seconds by a software search, the the paper receipt can then be pulled from that month's bundle.

[Ric]

Jim

I like file by ventor because you can go back and see what you paid for a product last month or last year. I know what I am paying for my everday products but not the once in a while stuff. Yes QB will break out each ventor and you could even do each product I am sure but it is easier to just keep a ventor file. Gas and other misc. is still the shoe box concept. If I have a one time or irregular ventor I will file them in a Like ventor file.

Ric
I can't spellllll but 2+2=5

[tomoaktree]

Jim,

I think I'm starting to get a good idea of what you are talking about. I need to go into my Chart of accounts and type in a whole bunch of new items (other than what qb came with). Is that what you did or do you write memos to itemize everything?
It sounds like a very good way to be organized so I can find things easy!

Thanks for all the input , I can't wait to get started!

[GroundKprs]

Tom-
Yes, set up all the categories you think you may need. Even go to excess, with too many categories; if you find later that you do not need so much detail, you can rename categories to combine them. But it is much more difficult to break one category into several other categories in the future. And plan your useage of the "memo" field also, so you can do detail reports and searches in the future.

Ric-
You have to expand your thinking about computer data. Use the memo field to record details, so future searches can be done quickly. I would record the above purchase as a split transaction:

memo - - - - - - Category - - - - - - - Amount
#43: drive belt - Repairs:mowers - - - - 25.00
4 23-5-18 @12.50 -Chem:lawn fert - - - - 50.00
qt Weedicide - - -Chem:lawn herb - - - - 25.00

Using this type of detail, I can track unit #43 to see if it is experiencing unusual extra maintenance (a lemon, or operator abuse?, etc.), and what parts it is using. I can also track the cost of this particular fert formulation over several years, without rummaging through any paper documents.

It does take some extra time to input this detail data, but reports and searches are much faster in the future. No paper filing system can match a computer database for ease of use int his manner.

[tomoaktree]

Jim,
How long have you been using this system ? It sounds like you have it down good. It must feel good to be that organized .
Would it be possible for you to post a copy of your chart of accounts ?

[HBFOXJr]

Receipts are put in a montly folder after being enterd into the acctg software.

Each piece of equipment or small tool (not hand tools) has it's own folder. Miantenace records and repairs along with reciepts are placed there after logging into acctg.

I thought I was anal but not enough to track fuel, parts and some other things for each piece of equipment. We go by division or revenue source such as lawn care, irrigation etc. Then we have categories and subs under them to get a true profit picture.

Payroll is tracked by division and working hours payed for. Holiday, personal, shop (rainy or repair days) hours, are not mixed with production hours.

This makes it real easy to total production hours and see sales per hour, equipment costs per hour, overhead per hour etc.

Total payroll and related costs such as SS, WC, liability, uniforms, health ins, help wanted advertising etc can be divided by the production hours paid for to get you real labor costs per hour.

It's not the hourly wage you think it is.

Good payroll records are probably more important than general acctg because we are so labor intensive and not being right can really screw you up. You gota do it all.

Another benefit is that by doing all acctg an payroll in house I take a neat pkg to the accountant once and year and get my taxes done for a few hundred bucks, business & personal.

[GroundKprs]

My accounts were created to make tax reports easy, and to give me the information I wish to have access to for my business. The need for various details has changed over the years, and some categories got combined and some new ones created. I even see some weaknesses in my system that I am just too lazy to fix. I would not recommend anyone use my exact system, because it is configured just for myself.

It would be best for you to go with a standard format, and any accountant could help you set up this structure. That way you would have a format that any accountant could work with, when you need outside help with the numbers.

[Ric]

Jim

You right I am an old dog but still can learn new tricks. Thanks

Ric

[eslawns]

I use an accordian file and Peachtree. The information is recored in the computer and the paper receipt filed by what categoty it falls into. Fuel, equipment repairs (labor), equipment repairs (parts), Utilities (Phone), that kind of thing.

At the end of each year when I go through and verify everything, I put the contents of each file in a paper clip with a piece of paper around it indicating the contents. All these go into a large manila envelope with the year, etc. on the outside. When that isn't big enough I'll use a box for from Office Max.

[Dochere]

Originally posted by Ric
We use QB pro...



Same here. All receipts are attached and filed with each job and the expenses are logged into QuickBooks. Gas is done on bus card as well as all bus card purchases and logged into QuickBooks. At the end of the year we get a year to date statement and use that in replace of receipts for the business cards.