Taxes/CPA question

Discussion in 'Business Operations' started by JayD, Jan 3, 2010.

  1. Greg78

    Greg78 LawnSite Silver Member
    Posts: 2,010

    Good thread.

    Fvstringpicker good idea to use the schedule c expense categories.
     
  2. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

    Is the IRS schedule C in the Quick Book program or are you just talking about an IRS paper form?

    Oh, thanks, by the way....
     
  3. Greg78

    Greg78 LawnSite Silver Member
    Posts: 2,010

    I don't know if it is in QB or not, I imagine it would be. You can look at it here to see the expense categories.

    http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
     
  4. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

    Thanks, I just printed it out and I will take a look at it....
     
  5. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

    I looked for that book and could not find it, but i am new to that amazon thing, would it be to much trouble for you to jump on there and see if you see it......thanks
     
  6. Greg78

    Greg78 LawnSite Silver Member
    Posts: 2,010

  7. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

  8. Two Seasons

    Two Seasons LawnSite Senior Member
    Posts: 791

    It won't allow unlimited entry into the description field. You abbreviate in the description field and enter the total into your debit column. Then save the paper receipt in case of audit.

    Best thing about QB, in my opinion, is the ability to look at your Profit/Loss for whatever time period is important to you or for the entire year(s) you've been in business. Another important feature is seeing what your total sales are for the month for tax purposes. I also like the fact that I can see how much we've purchased from a particular vendor, and of course a running cost per on everything I purchase. Keeps me on my toes.

    Worth the money!
     
  9. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

    Well, here is the up-date guys..........
    You are now chatting with a NEW Quick Books owner LOL........

    Yeah, I just bought it!

    Wish me luck LOL.....

    Thanks guys, you really helped a lot:)
     
  10. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,596

    My advise is to set it up so the expense categories on your books to roll up to the categories on schedule C if you're a sole proprietor. Page 2 of schedule C has an "other" category where you can customize some expenses like tools, safety equipment and a few specialized expenses unique to your business. For a service business I don't like the cost of goods sold section unless you have inventories. Your goal is to match your income statement with your schedule c form as closely as possible. You may, for example, want to break down wages between supervisors and general workers on your books for management purposes, but set up the system to subtotal all wages together for line 26 in schedule c. There will be less after the fact massaging of the data when you later want to compare your tax return to your business income statement.
     

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