Tracking Expenses for Shows: Advice from Cheffers

[abrahamlaur]

Hey Cheffers - I got a question for you about collecting/adding up your expenses for your shows. I havent done so yet, I've never made enough money to even claim PC as a job yet on taxes. But this year I'm *afriad* that I will be making more than $600 and realized I need to be able to claim some stuff ... Since I havent really been keeping track so far, what do you suggest would be the best way to go about this? Any ideas and/or suggestions would be great ... THANK YOU!

 

[Dawn4]

You can keep track of everything right in PP3. It allows you to put every expense you have for a show. As far as things I purchase for myself, I just keep a file labled receipts and I put everything in there. Good luck!!

 

[abrahamlaur]

what if some stuff you buy for PC is mixed in with stuff you buy from home? Do you just highlight what was for PC? LIke I went grocery shopping for my family but we were trying out new recipes from the cookbooks, can i deduct the ingredients from that receipt?

 

[riggs62]

what if some stuff you buy for PC is mixed in with stuff you buy from home? Do you just highlight what was for PC? LIke I went grocery shopping for my family but we were trying out new recipes from the cookbooks, can i deduct the ingredients from that receipt?

Good question, I was wondering the same thing....

 

[abrahamlaur]

Maybe someone will answer it then riggs

 

[Dawn4]

what if some stuff you buy for PC is mixed in with stuff you buy from home? Do you just highlight what was for PC? LIke I went grocery shopping for my family but we were trying out new recipes from the cookbooks, can i deduct the ingredients from that receipt?

Yes. In PP3 you can list the amount you spend for groceries, postage, gas, consultant gifts all within the expenses for one particular show. I then highlight the receipt and write on it whose show the receipt is for (even if it's multiple shows) and then I put that in my receipts file. As far as non-party related expenses... I just keep the receipts and at the end of the year I give the accountant a total on what I spent for my phone bill and for supplies and whatever else I have that wasn't linked to any one particular party.

 

[abrahamlaur]

so you just make a note of that stuff ... i dont have an actual accountant, we go to jackson hewitt for taxes, so i can just give it to them? can I deduct my phone bill and internet bill since i use them for my business, even though i use it for home use also?

 

[Dawn4]

so you just make a note of that stuff ... i dont have an actual accountant, we go to jackson hewitt for taxes, so i can just give it to them? can I deduct my phone bill and internet bill since i use them for my business, even though i use it for home use also?

My accountant deducts anything that has to do with my business. He deducts a portion of my home and cell phone use, my car insurance, my car payments, my internet access. Anything that I buy; supplies, consultant gifts. Just keep track of everything!!!

 

[abrahamlaur]

see thats the thing, i dont know HOW to keep track of it! do i write down my internet/phone bill amount each month to show them?

also i'm entering miliage into pp3, but where do i put expenses for groceries?? i dont see it in the drop down menu

 

[Dawn4]

At the end of the year I tell the accountant what I spent for certain thingsl. I have a file that keeps my bills month by month. At the end of the year I just add up what my phone bill was. My car payment is the same every month as is my insurance. I just multiply by 12 and he knows what I spent for the year.

I don't think PP3 has something that specifically says groceries. It just says show expense. That's where I put the food. Then I keep the receipts for everything that I purchased. The accountant has yet to ask me for an itemized receipt, but I have them in the event I get audited.

 

[abrahamlaur]

if the food was for me to use with new recipes and stuff, think i could put it under personal order? or supply order?

 

[Dawn4]

I don't usually do that, but I guess you can. Anything that is separate and apart from a party I just keep in a separate envelope. I'll have to check that out later

 

[abrahamlaur]

oh okay, thanks so much fo ryour help dawn!

anyone that has any other suggestions/tips .. PLEASE help ... all would be very much appreciated!

 

[Dawn4]

You're welcome. Please pass on any info you find!!

 

[jenniferp417]

I believe that if you're trying the recipes out with the intent of maybe using them in a show (and isn't that every new recipe? ) then you could keep the receipt and possibly claim it.Check with your tax person, as always.For this year, since it's really the first year I've done enough with PC to make any money, I'll go see a "real" accountant (rather than just a trip to H&R Block) so I can get a feel for what I can and can't do, so I know what to hang onto throughout the year.

 

[Dawn4]

Absolutely, a "real" accountant is the way to go. I tried to do my taxes through H&R Block, but they didn't really want to touch it because I have two home-based businesses and many writeoffs and different things. They actually suggested that I go to a "real" accountant. It was the best move I ever made. I usually get a chunk of change back in my tax return. Let's hope I didn't jinx myself for this year by saying that out loud

 

[abrahamlaur]

how much are "real" accountants as opposed to H&R block type of places? Maybe i'll do that if its about the same price! My hubby will be deployed then anywyas so it wont matter what he things LOL

 

[Dawn4]

My guy usually charges me $275, but I have two home-based businesses and my returns are pretty involved. My parents use the same guy for their regular returns and the charge for them is $175. So I would say somewhere between the two is a safe bet. Also, my accountant works for a large firm but he does several returns for people out of his home. He does mine from his home. I'm sure if I did it through his company it would cost a lot more. Ask around, I'm sure someone you know has a the name of someone you can use.

 

[katie0128]

oh okay, thanks so much fo ryour help dawn!

anyone that has any other suggestions/tips .. PLEASE help ... all would be very much appreciated!

Here is my two-cents worth...

First, I would HIGHLY suggest at least consulting with an actual accountant. I have nothing against the people that work for H&R, Jackson-Hewit, etc., but it isn't the same as talking with a CPA. Taxes ARE their job and they know the rules much better! Honestly, I don't know what it costs. My FIL is a CPA & CFA, so he does our taxes for us.

Second, as far as tracking expenses in P3, you can create your own categories to track expenses - whether related to a show or not. I have cateorgies setup for EVERYTHING - conf club deductions, insurance, groceries for testing receips at home. When you select "Add a New Income/Expense Transaction" there is an option on the right side of the dialog box "Edit Categories". Click on that and you can create any categories that you want. If you have expenses related to a show, you can enter them from the show screen. If you have non-show related expenses, you can click on the "Add a New Income/Expense Transaction" button from the main screen (the one with the dollar bill and + sign). Personally, I would talk

As far a writing off phone bills, cable bills, internet bills, etc, I would first talk with an accountant and find out what the maximum deduction you can take. Then setup an expense category in P3 for each expense and you can enter your monthly bill in there (or at least the portion you can write-off).

Regardless of who does your taxes or how you keep track your expenses, KEEP ALL RECEIPTS!!! You can enter things into P3, but you need to be able to back up everything you are claiming. If you are claiming a portion of a bill (cable, phone, etc.), keep the original bill with a note of what you are claiming for PC on it (either $ or %). Get an expandable wallet with month dividers and just toss receipts into the appropriate month. That way you can easily match up your recipts with your report from P3 at the end of the year.

 

[riggs62]

Great thread, thanks everyone for the helpful advice!:thumbup:

 

[ginamkiely]

ok this may sound like a dumb question but as soon as my husband woke up this morning and asked me how much i made last night he got on me about taxes....

every year when we do our taxes we get about $6000 back in refunds, are we going to get less back now that i'm making money with PC? i don't understand the whole 1099 thing. i don't want to lose money off our refund or (god forbid) have to pay taxes back at the end of the year. can someone please explain that to me... thanks.

btw, i am trying to keep track of everything, now after reading this thread i will be doing a much better job of that.
TIA

 

[KellyTheChef]

First off, I wanted to thank Katie for posting about adding new expese catagories...Laurie (and others) make SURE you do that so you know EXACTLY what those expenses are for! At tax time, I hand over a print out to my CPA that itemizes everything (mileage, recipe testing, business supplies, consultant gifts, etc.) so when he is inputting them into his computer program, all he needs to see are the TOTALS. I have the receipts all stapled along with these reports, so (God forbid) we are ever audited, it's all together.



Gina (and others) you can do what you want regarding "getting less back" on taxes...but here's what I do:

10% of my take home PC $ goes to Tithe

10% gets set aside for "taxes" (not that I will have to pay at the end of the year, but so it makes up for any LESS $$ we will get back on our return. If I didn't do this, it would be spent...this way it's like a "refund". Hope that makes sense!!)

30% is mine to do what I want with my business. Office supplies, samples, PC wear, etc.

50% goes back into the family budget.


Before we decided on these percentages, I was spending WAY TOO MUCH on my business on totally unnecessary items! I still think 30% back into my business is more than enough!

 

[PamperedinAvon]

I like the way your budget is set up, Kelly!

Be careful if you decide to highlight things on receipts; some receipt paper turns black over time where you highlight, completely defeating the purpose of your highlight! I just add up what was for PC and write that amount at the top of the receipt before I file it.:thumbup:

 

[chefann]

ok this may sound like a dumb question but as soon as my husband woke up this morning and asked me how much i made last night he got on me about taxes....

every year when we do our taxes we get about $6000 back in refunds, are we going to get less back now that i'm making money with PC?

Um- you do understand that by having your withholding set so high, you're essentially giving the government a $6000 interest-free loan each year, right? The goal should be to come out as close to even as possible. It's actually better for you (if you have the discipline) to lower your withholding and put the "extra" into a savings account so you can earn 1% on it.

 

[ginamkiely]

Thanks Kelly.. that helps a lot!! As soon as my husband realized I don't pay taxes now he started on how this "isn't worth it" which is so annoying to have to listen to at 6:30am! lol.
I'm definitely going to set up a seperate account to keep my 10% in first thing today, since I already got 2 checks from PC i already owe myself $80! lol. At least now I know to start saving EVERY receipt.
If I go out to lunch with a possible host (or my bff, lol) can I keep that receipt too for a business lunch?

 

[chefann]

As long as you talk business for a few minutes, you can.

 

[ginamkiely]

Ann... i'm ALWAYS talking about pampered chef!! So much that my husband actually asked for a "Break" from having to hear about it. I can't help it, i'm slightly obsessed. I guess admitting it is half the battle!

 

[jrstephens]

I have different categories setup in P3 for all of my expenses. I circle my items on my receipt if they are in with something else and write the total at the top. About every two weeks I sit down with my receipts and enter them all in P3. If I waited until the end of the year I would be so mad at myself for having to do it all at one time.

Don't forget the you can deduct the mileage for the trips to the grocery store to get those ingredients too. I love that!

My first year I withheld taxes from my PC money (around 25%) and put it in a savings account. I have used that as my "tax back up" since. I think I am going to put it in a 6 month CD to earn interest. That way at the end of any year if I need the money to pay in I will have it and during the year I do not have to continue withholding taxes into an account b/c that will be my taxes until I have ot use it and then I will start over withholding on my own. And also I have some money if anything pops up that we did not plan for and then I just pay it back into that account.

I do not think PC affected our refund that much last year. I had a lot of deductions and probably only shows a profit of around $500 or so, I cannot remember for sure.


Like Kelly I give 10% to tithe. I need to be more discipline like her with the other % though.

Right now I mainly use my PC money for anything extra that we want instead of using out "family income" for it. I am saving for vacation right now. Pc has allowed us to go and do a lot things we would not normally get to do.

 

[ginamkiely]

Thanks Jennifer. Thank you all for such great tips and ideas. It's amazing how much I learn about this business from you guys.

I forgot I have a meeting with a financial advisor tonight so hopefully we can work out a system to get out of debt faster and all my PC money is going to go to that.