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Taxes/CPA question

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

  1. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    Hi guys, wondering if you that use a CPA or what ever they call it to do your business tax work, I'm small and have not looked much into it yet although I'm thinking of doing it for next year.

    My question is, does your person ask you to break down all your spendentures into different categories?

    If so, What are some of them....

    Are there just a few, like fuel, office supplies, tools, labor, clothing, advertising, and how many others.......

    I do have all my receipts and wanted to start getting them folders of their own.....

    Any help would be grateful....Thanks.:)
  2. JB1

    JB1 LawnSite Fanatic
    Messages: 5,904

    there is what you call a chart of accounts, you can have 5 or 500 different categories depending on what you want to track.
  3. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    So no real rule of thumb on what gos where....


    Ice, and water
    food you buy at safety meetings
    oil, filters, spark plug,
    safety vest
    all these things go in the same category.

    How many categories do you use.
  4. Two Seasons

    Two Seasons LawnSite Senior Member
    Messages: 791

    We've used QuickBooks Pro from the start. When you set it up, it will ask you alot of questions about your business and, using that matrix, you should be able to get a grip on all the assets and liabilities your company has.

    Also, QB Pro allows you to send a CPA a full copy of your books.

    One more thing, QuickBooks now offers QuickBooks on-line. Not sure the overall benefits EXCEPT you can access it anywhere in the world, which, if you think about it, would allow you to process paperwork out in the field when you are taking 5 to fill up or on your lunch break.
  5. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    Hey thanks.....

    I was thing of looking into Quick Books, just have not got around to yet...

    So using them like you said above, your saying that it will ask you when you have a receipt to enter, it tells you where to to put it? What if your receipt has many items on it that may go into different files, will it let you split it up?
  6. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Messages: 4,350

    Quickbooks can do anything you can imagine.

    But say I go make a purchase at home depot...

    I buy lumber for form boards, and then I also buy a drill on the same tickets.

    Ideally I would want to classify the lumber as materials, or cost of goods sold. The drill I would want to place into the tools category.

    I would recommend getting a basic version of quickbooks at the least. I also recommend buying the book Green Side Up. (www.amazon.com) & reading it a few times. this will help.
  7. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    So your saying that Quick Books will let you put things on same ticket into different categories?
  8. JB1

    JB1 LawnSite Fanatic
    Messages: 5,904

    you can split it any way you want. Quickbooks is a very powerful program, I have used it for many years and am still learning new things, The thing is to get it set up right.
  9. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    Thanks for sharing all that with me, I have been hearing a lot lately about it and I think I make that call. In fact, I have just ordered some things from Vista Prints and I pretty sure I get a coupon for Quick books for a free 1 month trial....Maybe I will go back and re-look at that to make sure...How much do they cost, do you know??
  10. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,670

    Regardless of the program, you will have to code the expense category. For a small shop, I recommend you look at a IRS schedule C and fit your expenses into the categories listed. It will make it easier to "crosswalk" your expenses to the tax form. In the final analysis, it doesn't really matter if you code gloves as operating supplies or safety equipment but try to code it to a logical category.

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