If you own a network marketing business, you need to keep good records of your income and expenses. You must maintain a profit and loss account in order to take the pulse of your business. As a business owner, you have tax incentives that most employees do not. Legally you can deduct business-related and therefore reduce your tax bill. His key to success is to keep good records.
If you are just starting to network marketing, chances are you've never owned a business before. It was never "balanced books" or "was able to Ledger." And you've probably never dealt with in the income statement or balance sheet first. And some, the thought of doing this might be a bit 'overwhelming. So, I'm here to give you some simple tips on how I can keep my business organized.
Personally, I shoebox. Every month, I put all my income from the shoebox. This includes sales receipts, expense receipts and other things of receipt. The first day of the month, I have an empty box, and sort my income bracket. My common categories are:
• Turnover
• Inventory Purchases
• Advertising
• my vehicle mileage
• Internet Expense
• Telephone expenses
• Dining & Entertainment
• Business Education
• Other expenses
Once you have all the recipes sorted by category, the total amount for each category. Then enter this information into a Microsoft Excel spreadsheet, which determine my profit and losses (also known as P & L).
This allows me to see my income, my expenses and my income for this month. That way I know how much money comes in and how much money comes out.
On a side note, some are a bit 'more sophisticated than they are. People like that, they can follow the same process, but let their number in the accounting program like QuickBooks ®. How do you do it is really not that important. Just make sure to keep good records.
The last thing I want to do is a year of income unclassified your accountant at tax time. It's too much hassle.
But if you stay organized and follow the methods listed in this article, two things will happen. (1) you always know where your company is financially on a monthly basis, and (2) you have a well-organized tax time, which makes the process of filing tax information much easier. Hope that helps.
You can visit our MLM Resource Center to learn more Network Marketing Tax Strategies.
If you are just starting to network marketing, chances are you've never owned a business before. It was never "balanced books" or "was able to Ledger." And you've probably never dealt with in the income statement or balance sheet first. And some, the thought of doing this might be a bit 'overwhelming. So, I'm here to give you some simple tips on how I can keep my business organized.
Personally, I shoebox. Every month, I put all my income from the shoebox. This includes sales receipts, expense receipts and other things of receipt. The first day of the month, I have an empty box, and sort my income bracket. My common categories are:
• Turnover
• Inventory Purchases
• Advertising
• my vehicle mileage
• Internet Expense
• Telephone expenses
• Dining & Entertainment
• Business Education
• Other expenses
Once you have all the recipes sorted by category, the total amount for each category. Then enter this information into a Microsoft Excel spreadsheet, which determine my profit and losses (also known as P & L).
This allows me to see my income, my expenses and my income for this month. That way I know how much money comes in and how much money comes out.
On a side note, some are a bit 'more sophisticated than they are. People like that, they can follow the same process, but let their number in the accounting program like QuickBooks ®. How do you do it is really not that important. Just make sure to keep good records.
The last thing I want to do is a year of income unclassified your accountant at tax time. It's too much hassle.
But if you stay organized and follow the methods listed in this article, two things will happen. (1) you always know where your company is financially on a monthly basis, and (2) you have a well-organized tax time, which makes the process of filing tax information much easier. Hope that helps.
You can visit our MLM Resource Center to learn more Network Marketing Tax Strategies.
