Staying On Top of Expenses: My New Year's Resolution

[Amanda_RI]

I just need to say that maybe 2012 will finally be the year that I stay on top of keeping track of my expenses.

I've been a consultant for almost 9 years, and every year I find myself scrambling to organize stuff so that we can get our taxes done. AUGHHH. When will I learn?

Sigh....back to figuring mileage......

 

[MHouting]

I haven't been in that long yet, but I'm the same way...

 

[Gina M]

Me too! 6 1/2 yrs as a consultant and the daughter of a CPA - luckily I have most of it together now and can hand off my info to my dad. Need to start doing better this year!

 

[chef131doreen]

Me too I need to get organized in the tax area everything else is fine only that
Maybe this is the year

 

[Intrepid_Chef]

My appointment is Thursday. I figured it out last week in about an hour. Probably because I'm supposed to make a profit this year and so didn't go out of my way to find too many losses.

 

[Sheila]

Calendar it! Put it on your PC calendar, or set yourself a reminder on your smart phone or make it a task in P3 to sit down & do it each month. You can make the first of the month your deadline or whenever you normally receive your bank statement, etc. Then make sure that everything that you've done in the last 30 days is up to date in in P3 (or the new web world soon) so that when it's tax time you can just print out the report & do your taxes or hand it to your tax professional. You'll be so happy at the end of the year that you did that. PLUS, it alleviates you forgetting something that you did 10-12 months ago.

 

[esavvymom]

I am just happy if I have all of my receipts in a single folder, and that I record my trips in my calendar. I have done better this year with a mileage log book. I just dont enter it into P3 until tax time.

 

[Bren706]

5 years and the same thing for me! (I put all my personal receipts and biz receipts in the same box) (they go from my purse, to a shoebox, and then into a bigger box, LOL) and then have to sort through and input them into Excel and PP3 every year!

 

[Brenda.the.chef]

I've tried so many different things to keep me on track. I have my PC bank bag that I keep envelopes in for each month.. uh yeah. That didn't work. Everything just winds up in the bank bag! I do, however write who's show the receipts are for to make backtracking a little easier.For mileage, I write beginning and ending mileage in my planner as soon as I sit down in the car. I have even taken pictures of my odometer if I am running a little late and then write it in my planner.So, I'm making baby steps in being more organized.

 

[ShellBeach]

I have to do it as I go, especially recipe practice receipts & mileage that's not to & from the parties. Google maps can give me the show mileage if I forget to write it down.
The shows are easy to recall because they're in P3, but the other incendental errands & expenses, not so much.

 

[Amanda_RI]

Well, that's exactly what I struggle with. Ugh. Last year, I put in expenses day-by-day until mid-April, then it all went off the rails. So I have some of the year done.We're using a new accountant this year, so I'm all stressed out!

 

[higoobs]

Do I have to put the odometer reading from place to place or can I look up the host's residence on yahoo maps and get how many miles I traveled from here to there. I just want to be able to calculate the amount of miles and multiple that by .55. Does it have to be absolutely odometer reading or just get the amount of miles from yahoo maps?

 

[esavvymom]

Do I have to put the odometer reading from place to place or can I look up the host's residence on yahoo maps and get how many miles I traveled from here to there. I just want to be able to calculate the amount of miles and multiple that by .55. Does it have to be absolutely odometer reading or just get the amount of miles from yahoo maps?

I hope they'll accept maps. I have the entries in my Log Book, which I know from a tax-pro that is enough "documentation". But I also have my calendar to show when I go to meetings, shows, etc.

Just remember the mileage rate was $0.51 from Jan 1-June 30; 0.55 is from July 1-Dec 31 and present.

 

[higoobs]

Can you also write down the mileage for going to the grocery store for recipe ingredients?

 

[ShellBeach]

Yes, and the post office for mailing host packets, basically anywhere you drive in regards to PC business. Team meetings. Fair/booth setup the night before, and day of event. I can't think of anything else right now.

Do I have to put the odometer reading from place to place or can I look up the host's residence on yahoo maps and get how many miles I traveled from here to there. I just want to be able to calculate the amount of miles and multiple that by .55. Does it have to be absolutely odometer reading or just get the amount of miles from yahoo maps?

P3 will let you put a flat rate, if you change it from mileage-based.

If you get audited by the IRS they are going to want to see some sort of mileage progression over time, is what my accountant told me. Like if you had the odometer reading at one show, forgot to get it for the second through fifth shows, then write it down for the sixth show.
That's just an example. Because you'd have the show dates in P3 as proof, you can use google/yahoo maps.

Hah. I looked it up: pages 27-28 here
http://www.irs.gov/pub/irs-pdf/p463.pdf

 

[ShellBeach]

I have even taken pictures of my odometer if I am running a little late and then write it in my planner.

I am SO going to use this!
I feel like I'm in avalanche of paper as it is, so one less slip of paper with random mileage written on it is a great idea!

 

[monicag]

For mileage I keep a notebook in my car and anytime I get in it and make deliveries, go to shows, drop off host packets, post office, bank, anything PC related....I mark the starting mileage and ending mileage and then total. Then at the end of the year I just go through and total all of my mileage and multiply it by what the IRS allows and give it to my tax lady. I keep all my receipts for postage, groceries for shows, etc. in a file folder and then at the end of the year separate them by months and type and enter on my excel spread sheet. Then I run a report from P3 for supply expenses, consultant gift expenses and enter those. My tax lady loves me....she says it makes her job really
easy.I wonder since we are getting rid of P3 if they will have an option for us to track our expenses on the web. Anybody know????

 

[ShellBeach]

Wish I did. This is the main concern I have about P3 going away.
My accountant was really impressed by the report I gave her. She said she'd never seen such a "nice package" LOL from any other direct sales company.

 

[babywings76]

I've just been calculating the distance in maps and entering that. I'm horrible at remembering to write down my mileage. I guess I figured I have all the receipts from the post office so it proves I drove there and I had to go to host's houses for the shows, so I have mileage there, too. And I also figured that you see on my bank statements all the times I made deposits, so that's proof I drove there. Do you guys think that's not good enough then? I'll have to really try harder to document better then. And there were also times I took DH's car and not mine, so I figured that would make the mileage not appear correct, too.

 

[monicag]

Do you ever make deliveries to people that order from you personally and not on a show? That's why I like to keep a book in my car and my husband's just in case.....I know I wouldn't remember those unless I write them down right away.

 

[ShellBeach]

I've just been calculating the distance in maps and entering that. I'm horrible at remembering to write down my mileage. I guess I figured I have all the receipts from the post office so it proves I drove there and I had to go to host's houses for the shows, so I have mileage there, too. And I also figured that you see on my bank statements all the times I made deposits, so that's proof I drove there. Do you guys think that's not good enough then? I'll have to really try harder to document better then. And there were also times I took DH's car and not mine, so I figured that would make the mileage not appear correct, too.

Yes it is proof and probably good enough but honestly, having done it the procrastinator way using google maps and waiting until tax time, for the first 3 years, I have got to say entering it in P3 as I go along is SOOOOO much easier and less time-consuming in the long run. Also - I know there are many trips I forgot to write down when I use to wait until March/April.

What I do now is update P3 at least every time commissions are paid, because that way I am never more than 2 weeks behind, a month at most, and I can remember trips I took within that time frame. No way will I recall little side delivery trips from 6-12 months ago. I don't mind paying taxes but I don't want to pay a dime more than I need to!

That's why I'm bummed about P3 going away & not knowing if the new setup will have these income & expense reports. Yikes.

 

[babywings76]

I e-mailed HO about that and they said that the new website does have a way to track expenses and such and that those who beta-tested it really liked it.

 

[ShellBeach]

Whew! That is good news!