Tax time..what a bitty

Discussion in 'Business Operations' started by Guthrie&Co, Mar 1, 2006.

  1. Guthrie&Co

    Guthrie&Co LawnSite Senior Member
    from nc
    Posts: 784

    First year in the business and i didnt keep the books very well. boy what a mess this has turned out to be. luckly my father is an accountant so he will help bu i need to get my ducks in a row. there must be a better way of keeping track of expense and income. i really failed miserably here. all i did was file the reciepts in a filing cabinet and what a mound of crap that is. there must be a better way!!!!
     
  2. topdog

    topdog LawnSite Member
    from indiana
    Posts: 205

    Quickbooks Will Set You Free
     
  3. Guthrie&Co

    Guthrie&Co LawnSite Senior Member
    from nc
    Posts: 784

    man this really sucks. i am sitting here tring to remember what i made last year. to my surprise i can remembe most but i am sure the numbers are off just a tad...this is pathetic
     
  4. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Start with a ledger. List all your expenses during the year as you get them. Make sure you have categories also. Do the same for income.

    Or like someone else mentioned, quickbooks.

    kc
     
  5. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    QuickBooks can be found for about $160. Worth every penny.. Just as the name implies, it makes keeping the Books quick.

    QuickBooks has an average use life of 3 years which comes out to a little over $50 a year. You can make it go further but they release new version yearly and after the 3rd version updating becomes tricky.

    What does your father recommend? I would think he would be the person with the answers to any and all accounting needs you may have.
     
  6. jrc lawncare

    jrc lawncare LawnSite Senior Member
    Posts: 420

    Start with a ledger. I have two, one tracks all expenses separately, such as fuel, mileage, oil, parts, repairs, insurance, equipment purchases, what have you. The other ledger tracks all invoicing, sales tax, & billing. I also have two folders for the year with twelve slots each, one for all invoicing & one for all expenses by month. Good luck.
     
  7. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    That's too bad. First year in business, you could have racked up a lot of expenses. Starting out it is probably more important to keep track of what you spend than what you make. I wouldn't worry too much. The worst that will happen is prison for you and your family, and any family you may have in the future.
     
  8. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    Ha ha ha, lol littleriver1.
    don't fret to much scaby, that stuff can be a headache. Just have things organized for this year! make some folders for your all of your receipts and paperwork and either file it right when you come in each day or make one day a week to do it.(say Sunday night) very important to keep up with that stuff. Like someone else said it is good for your right offs, and to protect your butt from the IRS. Don't beat yourself up over it,the IRS will do that for you! just kiddin- hopefully they won't
     
  9. ECS

    ECS LawnSite Bronze Member
    Posts: 1,733

    All I use is Excel. My accountant loves me. I show up with one sheet of paper with all the info on it. I am just finishing up a new version to use. I will fill out my time sheet for the day, which has my breakdown for expenses. My Vehichle Expense report (work miles, personal miles, maint. fuel gallons for each vehichle and fuel $ for each vehichle, a total of all fuel, and the allowable mileage for all work miles), my total expense report for each category with the sales tax for work and non work kept separatly, a total sales sheet and all my invoices are all filled in automaticly from my daily time sheet. It automaticly fills out a monthly and a daily total for evrything. Total time to fill out my time sheet will = about 5 min. a day on the computer instead of the 45 min a day to keep everything updated daily. This setup is also going to keep track of all my daily, monthly and yearly hours for work. It also will tell me how much of what (lawn, snow, ect.......) each cutomer does for each month and for the year as well as what % of business each one of them represents for my business. I drop my one sheet of paper on my accountants desk on January 2nd only because they are closed for New Years.

    All my reciepts go into an envelope for each and every month in chronalogical order daily to match my daily time sheet. I keep a separate envelope for work and non work items. At the end of the month they go into one envelope for that month. I can tell you in a matter of seconds or as long as it takes me to open up my Excel program, any bit of information for my operation. I keep all my information on my hard drive, back it up daily on a flash drive, weekly on a zip disk and monthly on a CD. At the end of the year the only paper to be found is my 12 envlopes(#10 envelope, 4 1/8 X 10) of reciepts. I then close out my zip disk, lable it and make a new CD for the year.
     
  10. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    What he said but I use Q Books
     

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