Struggling to Keep Track of Expenses?

[mrshamel3808]

Ok, I don't think I've done a good job of keeping track of my expenses. How do you guys do it? I don't think I've done a good job of keeping receipts I'm going to get better at keeping receipts separate for each of the shows (I tend to buy stuff for multiple shows/personal use all at once) so there's a better, clear cut paper trail. I've only been doing this for 3 months so if I can't write off what I don't have receipts for then I won't be out much. Should I only input what I have receipts for (I'm not sure how it works legally)?

 

[smspamperedchef]

you would hate to get audited if you don't have receipts for everything you claim.
Make sure you have receipts for everything. Postage, groceries, office supplies, etc. Make sure you keep track of mileage too!
If you buy personal stuff with biz stuff just maybe highlight the receipt or underline it and add them up and put total at bottom of receipt. Will make it much easier at tax time!

 

[mrshamel3808]

Ok, well then basically I'll go into P3 and get rid of all my expenses and then re-input only what I have actual receipts for. Like I said, I've only been at this 3 months so I don't think I"ll be out much and it's a good lesson for me to learn. I buy for so many different things (church, personal, shows, family members), I think it's just easier to make receipts separate for each thing. It gets tricky when I have to turn in the same receipt to multiple people for reimbursement or records.

Do you guys keep receipts for specific shows with info on those shows (like a closed show file with order receipts, expense receipts, etc.) or do you have your receipts organized by type of expense (show expense, office supplies, postage, etc.).

 

[Jolie_Paradoxe]

My "system" is currently in need of an overhaul. Eventually, I will get to it. Here's what I have been doing.

I toss ALL receipts in a cookie jar. Every 2 weeks, I review and determine what is related to PC (groceries, postage, office supplies, etc.). If there are personal items in the receipt, I highlight the PC portions, add it up and include the tax relevant to that amount. I make a note on the top of the receipt (Show 13, $5.78).

When I input them into P3, I then file them into an index box by month. I review each show, and using Map Quest, input the mileage (flat rate).

As a said, it's crude but it's enough for now. Eventually, I'll get better!

 

[diradt]

Laurie, I like that idea. I am awful at keeping my expenses as well seperate but I like that you just toss it in and do it at once. Hmmm Now I have to buy a cookie jar! LOL

So my question is, since you compute the mileage based on MapQuest....do you include specific odometer readings or is there a way to just enter the miles (like 12.5 miles vs 83000-83012.5) ?

 

[Jolie_Paradoxe]

You're funny....do not buy a cookie jar....PC offers an amazing array of products....can I interest you in one? He He

Actually, you can just jam them into a ziplock bag, a cosmetic bag.....anything you have around....just something you designate as your drop off point.

For mileage, there's an option for flat rate. You then just enter the actual number of miles....12.2, etc. Much easier than logging in the odometer readings.

 

[diradt]

I think I found a new best friend. That is waaay easier.

And have you seen the collapsible bowl? Perfect for reciepts...lid and all! LOL

 

[Jolie_Paradoxe]

LOL....hello, my friend. I need to use that one. It's great for salads, chips and dip, hiding chocolate from the kids, and record keeping!

 

[beepampered]

I use Quicken for all my expenses and just allocate certain items towards PC. I keep receipts, circling items that are for business use.I MapQuest directions to go to a show and keep those pieces of paper. I then enter mileage into an Excel spreadsheet so I have a total at the end of the year. I'm sure there is a lot of stuff I miss but I at least get most of it.

 

[mscharf]

i dont' think you need to seperate each purchase by show, just note when you input it into P3 which show/shows it is for. I do seperate out personal from business at the grocery, just so i don't have to do the math myself, but that is up to you!

 

[wadesgirl]

I have two different checking accounts, one personal and one for PC. I use the PC wallet from Merrill, it has two pockets in one of the zippered sections. Since I basically only use my debit card for things I still have to balance my checkbook. When ever I get a receipt I put it in one pocket or the other depending on if I used my personal account or my PC account. Then when I balance both check books I put my PC receipts in a pile under my monitor in my office and my others go into a shoe box to go through later (returning items or eventually shredding). This helps me keep track a lot. If I have to get things for both at the store I usually ring them up separate, this really helps so that I'm not loosing receipts that were personal but had a few PC items on it.

 

[Melissa78]

For quick receipt tracking while on the go - I have used just a simple envelope (usually a business sized) with the month or title on the front. I found it useful when I purchased my home and had a zillion receipts from everywhere and I would separate them for easy returns/tracking. I just open the flap when I'm at the register and stuff the receipt right into that envelope. Then I can pull that out to put in the house or for recordkeeping and should I need to return something - for that month atleast the receipt is always on me. (I'm great for walking out of the house without a receipt...)

 

[Clementine426]

As for IRS purposes - you might want to check on other things that are deductible that you might want to start tracking. Like...the office space at your home. So for example if the sq. ft. of your home office is 10% of your home then you can deduct 10% of your mortgage payment as part of your business expenses. You can also deduct for not only your supplies but also your equipment - computer expenses, cell phone expense, internet connection - these are all valid business expenses that are not brought up here. Check the IRS website for small business for further details.