[Graham Maddison]

I wonder how many people are keeping accounts of their income and expenditure with their new online business?

I suspect not very many, as most people are probably just starting out in a bid to TRY and make an income on line and keeping track of accounts had never really crossed their minds.

Have you considered what you would do if the tax man came knocking on your door?

Not only from the tax man perspective, but it should be essential to you to keep records in order to keep within any budget you may have set.

When your pips business finally does take off and you are earning a substantial income you need to be able to offset your income against your expenditure in order to pay minimum taxes.

Just a bit of food for thought, which you rarely see mentioned.

[LOTNET7]

This is a reminder to all of us. Record keeping is vital to any small business operator and can help you claim tax rebates from the tax man. With the busy schedules, one is bound to ignore and account for any income/expenditure.
I do keep records of all transactions and have contracted accounts services with a local accountant in my area who helps and sends them to inland revenue.
It requires self discipline and honest. Remember, tax man may knock one day at your door, so be prepared!.
Thank you graham for tip.

[Cynthia Minnaar]

Great tip Graham.

It is also worth finding out from your local tax man what extras you can claim for working from home. As an example - the portion of space that you use for your home office.

Cheers for now
Cyn

[Jeff Casmer]

Hi Graham,

I use a template which I fill out everyday that includes my expenses and my income for the previous day.

Everyone should maintain good records for a variety of reasons...

Take care
Jeff Casmer

[pbwsfi]

Since I am already self-employed I have a decent idea about keeping records for tax purposes. My full-time job is a bit more complex than record keeping for my online ventures but the idea is the same. I have a simple spreadsheet showing dates, expenses, payments, and the source of each expense/income that is generated. Good idea to post this information though for those people who don't realize that online businesses are just like any other - you really do need to track profits and losses just like any other business does!

[Patrician]

I also keep a spreadsheet - I used to fill it in everytime there was an expense or commission - but now I just have a 'Tax' folder and put all receipts in there and every so often I fill in the spreadsheets.

... and my tax guy just loves me and gives me a discount.

I have one for expenses, one for commissionsl/fees, one for my home office expenses where you get about 33.33% of your rent, utilities, insurance, etc. for home business deductions.

So deductions is one very good reason to keep track so you don't miss them.

A possible audit by the IRS is another very good reason to account for every single dollar you claim as a deduction. I have receipts, printouts from Paypal, bank statements, etc., all at the ready.