Simple tips to help organize your self employment taxes:
First things first – KEEP ALL OF YOUR RECEIPTS. Yes, even that receipt for $2.06. It may seem silly at the time, but I promise you those little expenses really add up! Keep every receipt as you get them, and stash them in a certain place until you can organize them. I put them in this organizer on my desk:
Call me old fashioned, but I still keep the paper copies. Someday, I’d love one of these electronic receipt filers – would really help with keeping things digitally organized.
Ideally – you will organize these at least once a month. But sometimes it doesn’t happen for a few months, and that’s OK as long as you can carve out some time to organize them all together. Take those receipts that you’ve stored in one spot and spread them out on a large surface. Then organize them by date (oldest to newest). If you have a few months worth of receipts, then organize them by month first, and then by date.
Once they’re organized, you can put them in envelopes by month. Nothing fancy – this is all I do:
Once you have all of those organized by date, you can start inputting them into the computer. Now if you’re fortunate enough to have the money for one, this is where one of these machines would really be helpful. But you don’t need to have fancy equipment to stay organized -Word documents can do the same thing! I used to just have them in boring black and white tables, but I made them pretty to share with all of you! Pretty organization seriously gets me excited – anyone else?
First I enter in all of the income I have made. This goes in the “profits” table:
UPDATED TO ADD: I’ve had a LOT of questions about how I earn money blogging – here’s a post with ALL the details!
Then I take those receipts out and categorize them. The first year I did taxes this way, I just lumped all of my expenses together. But my CPA told me that it would really help if I split them up into categories, like this:
I am NOT a professional and I am not giving you advice on what you can/cannot write off on your taxes. It’s important to work with a CPA who can guide you in the best direction when preparing your self employment taxes. Here’s another good article about the things you can write off when you’re self employed.
Have fun with these! I know your accountant will be excited to see how you’ve organized your small business taxes this year!
These printables are not able to be customized, and are only able to be printed out and written on by hand. If you would like a digital download (in Microsoft Word) I sell them for a very inexpensive fee through Etsy.
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