Maximizing Your Food Cost Write-Offs: Tips for Record-Keeping and Organization

[cooking.with.ann]

OK, I'm trying to be much more productive this year, and trying to get more organized from the start...

What records do you keep of your food purchases to determine what you are going to write off? Receipts, log of recipes tried, notes, what?

Many thanks! This site is such a great help to me, and I appreciate all of you very much.

Ann

 

[amcclanaghan]

I just save all of my receipts in one folder that have products from receipts I'm going to or have tried. Then everything goes to my husband and he does the taxes

 

[Rebeccascabinet]

I save all my receipts in a envelope (in an ideal world). I count recipes I try and if I buy any food for the shows.

 

[C. Schapker]

Start out rightTo keep it organized I tell my new girls to start out right to get into the habit of entering all your show expenses as you go. This includes your mileage, food costs, and any extra costs such as mailing for that show, etc. You should, before you close your show key in all your expenses for that show under Income/Expense report. Then at the end of the year you simply print out your expenses for your tax purposes.

Also, do keep all your receipts. I too use Manilla folders. Some people do according file folders so you can have all receipts for each month. This is handy too.

 

[chefann]

I use an accordian file, but rather than monthly, I sort receipts by category: office supplies, groceries, postage, etc.

For food receipts, I try to write the reason on the receipt (and circle the applicable items if there were non-deductable items on it) when I get home. Like "recipe for Sue's show" or "try out theme show recipe."

 

[ChefBeckyD]

I'm like Ann - I keep receipts by expense, not month. I also "try" to record everything in PP as I go along for each show - so mailing expenses, and show ingredients, etc...are all right there together. I do the same thing w/ mileage - I mapquest each show and put in the mileage, but then also keep the actual mileage written in my Franklin Planner.
For recipe trial ingredients - I just keep all my grocery receipts, and highlight the items that I used for PC recipe trials.
I do our taxes w/ Turbo Tax, and it couldn't be any easier...in fact, I think it is sorta fun (sick and wrong, I know!) I did our taxes last weekend, and sent them in late Sunday night.....on Monday morning, I had an email that they had been accepted by the IRS, and the refund would be deposited w/in 2 weeks!

 

[christy_c]

QuestionIf a customer wins a free cooking show and I provide the ingredients, do I enter the cost of ingredients as a Show Expense in P3? Or Consultant Gift? Which would that fall under? Also, do you enter the actual cost or $15? I know when I buy the ingredients, they are always more than $15...

 

[chefbecky]

To keep it organized I tell my new girls to start out right to get into the habit of entering all your show expenses as you go. This includes your mileage, food costs, and any extra costs such as mailing for that show, etc. You should, before you close your show key in all your expenses for that show under Income/Expense report. Then at the end of the year you simply print out your expenses for your tax purposes.

Also, do keep all your receipts. I too use Manilla folders. Some people do according file folders so you can have all receipts for each month. This is handy too.

I'm new too (3 months) and this is what I try to do. I've also gone to buying all my food for hosts because sometimes they can't find thing and substitute weird things that might sound good Then depending on the host I have them re-emberse me or if I'm paying I write off the total spent not just the $15. I don't know if this is the right thing to do but so far it works for me. I have an appt. with the accountant on Tues. I'm sure He'll have some great ideas too.

 

[cookingisfunagain]

Show Expense Or Consultant Gift?

Gifts, according to our friends at the IRS, are restricted to $25 PER client/customer PER year..... So, only use that designation for true "gifts". Christmas present, baby shower gift, wedding gift... etc. All other expenses are or should be considered INCENTIVES.... As far as I know there is no rescriction on incentives. So, you offered to buy the recipe ingredients as a incentive, hoping that would get the host to book~ not as a gift because of a special occassion.

Besides food items purchased for shows, or for recipe experimentation, consider setting up catagories for:

Office Supplies
Professional fees - membership fees, tax/accountant fees, lawyer fees, business license, chambre of commerce, etc
Subscriptions & books - Lemon Aid Lady!
Cleaning - laundry soap and dish soap used to clean PC items, either purchase sep. or figure a fair %
Paper & plastic products used for shows
Furniture - office, storage
Gifts
Conferences, seminars and other trainings
Car expenses or mileage

There will be additional catagories if you are claiming a portion of your home for exclusive or regular business use, such as utilities, home owners insurance, hazard insurance, PMI, property taxes, interest on home loan.

What other catagories do you all use??