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do u came all your income

Discussion in 'Business Operations' started by jeff_0, Apr 29, 2003.

  1. jeff_0

    jeff_0 LawnSite Senior Member
    from md
    Posts: 401

    i'm new to having my own business.. i started last year... it's kind of hard for me to track all of my income.. does everyone claim every dollar they make
  2. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Posts: 589

    Yes i claim all my income, all business income is tracked directly through quickbooks and i am not even able to receive a payment without it getting recorded, otherwise all kinds off things become unbalanced.

    Most of the guys here claim 100% of their income and the ones that don't should.

    If you have problems tracking income you need to look into investing into some sort of accounting system. That can either be a paper system or a little more expensive, but tons easier a computer system.

    If you search this site you will be able to find alot of information on book keeping practices.
  3. KerryB

    KerryB LawnSite Senior Member
    Posts: 661

    Time to buy Quickbooks. lol
    If you cant track all your income then you surely cant track all of your expenses.
    How will you know if your making a profit?
    And yes I claim all my income and take all my deductions. I keep up with it on a daily, weekly and monthly basis. That way I know if I need to buy more equipment to offset income.
  4. jeff_0

    jeff_0 LawnSite Senior Member
    from md
    Posts: 401

    thank you guys.. i'll looking into buying quickbooks
  5. Green Pastures

    Green Pastures LawnSite Silver Member
    Posts: 2,457

    YES, honesty is always the best policy.
    God provides all I need IF..........I do what's right.
  6. Meier

    Meier LawnSite Senior Member
    from DFW
    Posts: 269

    You need to track EVERYTHING that's business related. Even if you plan to under-report your income (which I wouldn't advise) you need to have a legitimate set of business income/expense records.

    If you plan to hide revenues from the IRS, etc...I'd recommend you keep two sets of records. One for the IRS in case they ever audit you and another set so that you know what your making.

    If you don't keep track of every penny (whether reported to the IRS or not), how will you know how much money your making?

    You need to know how much money your making, in my opinion.

    Again, I would STRONGLY recommend against trying to pull any kind of BS with the IRS. From what I understand, you don't want those problems. If/when you eventually get, you could face very stiff fines, penalties and back taxes. Probably risk going to prison.

    I report everything to the IRS.

    DFW, TX
  7. Doogiegh

    Doogiegh LawnSite Senior Member
    Posts: 871

    Yeah, blah blah blah IRS, prison, penalty etc... They are all hyped up and can and do happen.

    BUT a real, totally UNDERESTIMATED problem is this:

    Business is doing Very well. You decide to continue to grow and get a new piece of equipment. When you go for the loan, you put down your income. Well now, with your debts and truck payment and other loans all being paid on this little bit of income you "SAY" you make, you are denied for a loan. (Example, you make $35,000 a year but CLAIM to only make $27,000)... So now what do you do? Tell the loan person no really, you have more money and lied about the income? Or go buy some used piece of **** machine of which you are risking your entire business growth on? (Dependability, reliability)...

    It is all a big cycle... Claim all the income, get bigger equipment and use it as a deduction at tax time so that you're not hurt... make more money, buy bigger equipment (trucks, crews etc), and make even more money.... one fist feeding the other.. Can't happen if you make the same $27,000 bogus income year after year after year....

    Good luck,
  8. nu83

    nu83 LawnSite Member
    from omaha
    Posts: 238

    If you go to sell your business sometime down the road the value of your business will be hurt if you under claimed income.
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    yup, claim all income
  10. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    yep even the nice green stuff

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