Accounting and Tax FAQs for P3 Expenses and Income

[WendyE]

On P3:

1. When putting in expenses for testing a recipe at home, what catagory do you put the expense under? What catagory do you put office supplies under? Can you add your own catagories?

2. What is the difference betweem a 'kit enhancement" and "sample order' when choosing an expense catagory??

3. What do you use for a 'receipt' when you order things on a guest or host order for yourself (ie you business). i.e. a host decides not to order her half price item and you need a family skillet for demoing, so you order it on her order. Do you just print an extra copy of her order for your own files and make a note of which item was yours and why you purchased it?

4. Do I need to put all my commissions in P3 or does my 1099 give me that info? Seems repetative to put income in when it's all on the 1099? What am I missing?

Thanks!!

 

[NooraK]

I've decided this year to go to a professional, so that I don't have to question all of the categorizing issues. And I'm not talking H&R Block or Jackson Hewitt, I'm talking a CPA that specializes in small businesses.

I saw that someone already answered in the Chat Box, but a Kit Enhancement is to purchase new items for your kit, while Sample Orders are for newly introduced products. It's a PC definition between two types of orders, I don't believe there is any difference when you are talking about taxes.

For an item ordered through a show that you then use for your business, I would make sure you mark the portion you pay as "Consultant Gift" and print an extra receipt, then record on the receipt what the purpose is.

Your 1099 covers the information the IRS needs for your tax return regarding your income. You can add it to P3 so that when you print your expense report, it can show you whether you made or lost money in the end.

 

[WendyE]

I've decided this year to go to a professional, so that I don't have to question all of the categorizing issues. And I'm not talking H&R Block or Jackson Hewitt, I'm talking a CPA that specializes in small businesses.

I saw that someone already answered in the Chat Box, but a Kit Enhancement is to purchase new items for your kit, while Sample Orders are for newly introduced products. It's a PC definition between two types of orders, I don't believe there is any difference when you are talking about taxes.I do ralize the difference in what they are when you place an order, but not when it comes to tax catagories. Wasn't sure whey they were seperate under expense catagories?

For an item ordered through a show that you then use for your business, I would make sure you mark the portion you pay as "Consultant Gift" and print an extra receipt, then record on the receipt what the purpose is.
Sorry, I don't get this at all. Why would this be a consultant gift? And where would you mark it as one?

Your 1099 covers the information the IRS needs for your tax return regarding your income. Where on CC is our 1099? I can't find it? Only info about 1099's and my commission statement. Ugh! You can add it to P3 so that when you print your expense report, it can show you whether you made or lost money in the end.

Thanks for your responses! I appreciate you taking the time to help! You've been so supportive in my infant stages of this buisness! No one answered my question about what catagory to put expenses for testing a recipe or business supplies. Any ideas?

 

[NooraK]

I do ralize the difference in what they are when you place an order, but not when it comes to tax catagories. Wasn't sure whey they were seperate under expense catagories?

For tax purposes, the type of order shouldn't make a differenec, if you're ordering the products to be used for your shows. They care about the end result, not necssarily the method by which you obtained it.

Sorry, I don't get this at all. Why would this be a consultant gift? And where would you mark it as one?

"Consultant Gift" is the only payment method available in P3 that really allows you to indicate you paid for it. If you didn't do it when you submitted the show, you can no longer change it. When you're entering payments for the show, you would enter the amount the host is paying for her things, and then make the rest "Consultant Gift" to indicate that you paid for it. That way, when you're looking at a receipt with someone else's name on it, that you're trying to claim as your business expense on taxes, there's something official that shows why it is your expense.

Where on CC is our 1099? I can't find it? Only info about 1099's and my commission statement. Ugh!

I don't remember the exact path off the top of my head, but it's one of the first two tabs on the top, and there's an option that talks about Tax Information, and you can find it there.

No one answered my question about what catagory to put expenses for testing a recipe or business supplies. Any ideas?

I don't really have ideas, which is why I've decided to go with a professional this year.

 

[WendyE]

"Consultant Gift" is the only payment method available in P3 that really allows you to indicate you paid for it. If you didn't do it when you submitted the show, you can no longer change it. When you're entering payments for the show, you would enter the amount the host is paying for her things, and then make the rest "Consultant Gift" to indicate that you paid for it. That way, when you're looking at a receipt with someone else's name on it, that you're trying to claim as your business expense on taxes, there's something official that shows why it is your expense.
OMG I didn't know a thing about this! Thank you for filling me in!!

Where on CC is our 1099? I can't find it? Only info about 1099's and my commission statement. Ugh!

I don't remember the exact path off the top of my head, but it's one of the first two tabs on the top, and there's an option that talks about Tax Information, and you can find it there.
Ya, that's where I looked. When I clicked on Tax Informatiuon, then My 1099, it just took me to an IRS page with info. Guess I'll have to call OH

Thanks again for all your help!