I often get asked how I stay organized as a yoga teacher when it comes to accounting and keeping track of numbers for year end taxes. Not only do I think it is important to keep track of income and expenses for year end taxes I also think it is extremely important to know your numbers in your business!
Here are some of my tips:
- Keep all your receipts and organize them into envelopes that you have categorized i.e.: office expenses, sales invoices, cell phone bills, equipment, etc.
- Every month spend an hour and tally all your expenses for each category. Also look at how much income you have brought in for that specific month. Then transfer these numbers into a spreadsheet so you can see what is coming in and what has gone out for that month.
- Ask an expert! Spend the money to speak to an accountant and know what you can and should be claiming for expenses each month. You may be amazed to find out there are some keys areas you have been missing out on!
- If you work from home be clear on what you are able to claim within your home office space and what you are not able to claim. If you are not currently claiming this then I suggest you find out what you can be claiming. Every little bit can help!
- When in doubt ASK! When it comes to your taxes it is not the time to be guessing and estimating. Know your numbers and if you don’t know your numbers then find a professional you can trust!
- Feeling overwhelmed? When my business grew I couldn’t keep up with the book keeping and finding somebody I trusted to do the job was one of the best decisions I made!
- Check in with your numbers. Spend time once a month or even a few times a year to check in with your numbers and make sure you are on track with your goals for the year. Don’t wait until year end!
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