How Bookkeeping Makes Taxes Easier
Valerie Johnston
Freeing business owners from bookkeeping stress | Author of D.I.Y. Bookkeeping | Owner/CEO of Profit Meadow Bookkeeping | QuickBooks Online Certified ProAdvisor | Bookkeeper
Having a bookkeeper can make filing your taxes MUCH easier!
For example, if you own a LLC or Sole Proprietorship, you file a Schedule C tax form.
There are five parts to this form:
- Income
- Expenses
- Cost of Goods Sold
- Information on Your Vehicle
- Other Expenses
My job as a bookkeeper is to take EVERY SINGLE TRANSACTION you make in your business accounts and categorize it so that it falls into these categories.
Here's a real-life example of how this works:
- You purchased materials from Hobby Lobby
38. Materials and Supplies
- You bought flyers from Moo.com
8. Advertising
- A client bought your product
1. Receipts and Sales
- You pay your landlord
20. Rent or Lease
- You pay your bookkeeper for categorizing all of this
17. Legal and professional services
As you can see, these transactions start to add up quickly. My job is to categorize them on a weekly and monthly basis so that when it's time to file your taxes, all you have to do is take the report I make to your CPA.
Want to hand this task off to someone else? Sign up for a FREE Consultation!
Want to know how much it costs? Check out our Services and Pricing.
Blessings,
Valerie Johnston