Register free!
Search
 
     

Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 06-12-2014, 09:58 AM
lawnworker's Avatar
lawnworker lawnworker is offline
LawnSite Senior Member
 
Join Date: Jan 2000
Location: VA zone 7
Posts: 884
Expensing fertilizer

For those that have been applying lots of fertilizer for clients, how do you track your expenses for tax purposes. I am contemplating just listing fertilizer under supplies on my tax return. Does that make sense? Just buying a whole lot of bags and using what amounts are required for each customer.

I don't use GAAP accounting procedures.

I use individual spreadsheets for all customers and track expenses on a spread sheet. For jobs such as mulching the mulch goes on the spreadsheet as materials reducing income. The reduced amount goes on tax forms at end of year. Income - materials I do this because i carry no inventory.


Fertilizer and chemicals are so different because a purchase can cover many jobs.
__________________
So let us not talk falsely now, the hour is getting late.
Reply With Quote
  #2  
Old 06-12-2014, 10:38 AM
snomaha's Avatar
snomaha snomaha is offline
LawnSite Senior Member
 
Join Date: Jan 2004
Location: midwest
Posts: 517
Quote:
Originally Posted by lawnworker View Post
For those that have been applying lots of fertilizer for clients, how do you track your expenses for tax purposes. I am contemplating just listing fertilizer under supplies on my tax return. Does that make sense? Just buying a whole lot of bags and using what amounts are required for each customer.

I don't use GAAP accounting procedures.

I use individual spreadsheets for all customers and track expenses on a spread sheet. For jobs such as mulching the mulch goes on the spreadsheet as materials reducing income. The reduced amount goes on tax forms at end of year. Income - materials I do this because i carry no inventory.


Fertilizer and chemicals are so different because a purchase can cover many jobs.
Fertilizer is like any other material and supply - no need to break it out per customer. The full cost of all the fertilizer you buy is a deductible expense.
Reply With Quote
  #3  
Old 06-12-2014, 07:21 PM
jbturf jbturf is offline
LawnSite Bronze Member
 
Join Date: Sep 2007
Location: groton, MA
Posts: 1,304
I would suggest some good accounting software like quickbooks, and stay faithfull and make entries each week, it will make life much easier and tax time alot easier
Posted via Mobile Device
Reply With Quote
  #4  
Old 06-12-2014, 09:00 PM
FdLLawnMan's Avatar
FdLLawnMan FdLLawnMan is online now
LawnSite Bronze Member
 
Join Date: Jul 2004
Location: East Central WI
Posts: 1,036
I do not track it per customer. It is my income minus my expenses. I know what the fertilizer costs per k so I know my cost structure, but that's it.
__________________
Mike I
Mike's Total Lawn Care

I love my country, but mistrust my government, and the government doesn't create jobs, it just takes my money and gives it to other people or groups it thinks it can bribe.
Reply With Quote
  #5  
Old 06-12-2014, 09:39 PM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,191
I track all materials per customer.

I want to know exactly what the net for each customer is per year.
Reply With Quote
  #6  
Old 06-15-2014, 08:54 AM
foreplease's Avatar
foreplease foreplease is offline
LawnSite Bronze Member
 
Join Date: May 2008
Location: St. Joseph, MI
Posts: 1,250
I agree with 32vld: I want to be able to look back and pair expenses with work I invoiced - and to know actual vs estimated.

If you are doing lawns everyday and using the same material for dozens or hundreds of lawns it it important to at least spot check yourself and the time to document each lawn may not be worthwhile. I almost never use the same material or rate from one job to the next as I do athletic fields only and they are all different.

How you account for the fertilizer expense depends on your business structure: sole proprietorship, LLC, partnership, or corporation. Also whether you use cash or accrual method of accounting. Sounds like yours is sole proprietorship cash basis. If so, you expense non-capital items in the year you pay for them, whether you use them in that year or not. Mine is a LLC and this method is the most advantageous and simple for me but makes it difficult to compare from year to year how I am really doing. Since I answer to nobody else, total revenue is a good benchmark for me as long as I maintain my margins and have a good understanding of what the mix of work I had was (it is not all fertilizing and chemical applications for me). In other businesses I have been in, one (retail music) had a large inventory with 10-12,000 PLUs on hand at all times. For that, accrual based accounting and a good point of sale system was required. In another (construction), job cost accounting was important.

Beyond satisfying the IRS it's all about having the information you want to have.
__________________
Michigan PABL
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 01:05 AM.

Page generated in 0.06994 seconds with 9 queries