Getting organized!

[rtsims]

Business has been picking up for me and i need to get my paperwork side of things organized. I purchased two of those plastic file boxes now im trying to figure out what different categories i need to file things in. Example: a file for accounts receivable, file for "won and done", and related topics in one file box. The other i was going to use for expedeturs, receipts etc. What do you guys categorize these things uner. Vehicle Maintenance? Gear?

I would have posted this in the Biz management forum but no one ever goes there, plus i wanted info from true "Tree Men". Thats my new title for us kinda guys after reading the Guido's last Hurrah story. Thanks guys.

PS: Quickbooks is on my X-mas list so im sure that will help.

 

[ATH]

Do you do your own taxes or have an account do them? If you hire that out, I'd talk to your accountant about what different categories he needs from you at tax time. Start with those, then add as you see fit.

Without going to look, I think I have:
*1 for each vehicle (could put all into one for tax purposes, but it will make it easier for checking maintenance records, etc. if they are separate)
*Fuel (I actual expense my truck, so that is written off, if you report milage to IRS, the vehicle's fuel cost does not matter, but chainsaw gas certainly does!)
*Large equipment (that you will depreciate)
*Small equipment (one time write off)
*"resale" purchases (for example, if you do pesticide applications keep the chemical receipts here; the cost of trees I plant go here too)
*Insurance
*Workers comp
*Supplies (postage receipts, office supplies, etc...some may separate, but I am not running a major office operation here! Could also put all the other expenses that are written off here ie: chainsaw gas if you want to keep that separate from a vehicle fuel folder)
*Misc expenses (This is where I keep things that cannot be written off of the taxes, but I still need to track...for example: chainsaw chain, files, work clothing, cell phone bill...I pay with company money, but use it for personal use as well so would be a tough sell to write that off, etc...)
*Bank statements
*Deposit records (I keep those and 'bank statements' in one folder, but there may be good arguments for separating).
*Tax records:
--Federal withholding
--State withholding
--Minicipal withholding
--Federal SE tax
--Sales tax filings
--soon to be added health care tax
*Open contracts
*Completed contracts
*Pesticide application records
*Pesticide licensing info
*Cert. Arborist info/continuing education hours

I also keep a folder of "field notes". If I really wanted to go nuts, I'd keep a seperate file for each client that would have notes, contracts, etc... in it. I do this electronically...but there is some logic to keeping hard copies - but I am not organized enough to maintain that.

I have a spreadsheet tracking project completion, billing and payment, so I don't have folders for those.

I am probably missing a couple, but those seem to be the ones I am putting stuff in most often.

Look forward to see what others have to say.

 

[rtsims]

Thanks ATH. Thats a good start. I will use some of those but not all will pertain to me at this time. Im going to do my own books/ taxes this go around and will eventually look into a CPA. I have enough time right now to do these things on my own, and i want to have a handle on all aspects of my biz. Part of the "growing pains" i recon. Im still undecided on wheather or not to write off mileage or fuel. Obviously the bucket will be fuel, but the pickups might be mileage seeing as my main truck gets approx 18 mpg. I will be writing off all chains, files etc. Those are 100% biz expenses as is my phone. I may use my phone for personal use here and there but i can justify that.

 

[ATH]

1) I think it is a good idea to do the taxes yourself (as painful as that is) for at least a couple of years so you know how it all works. It may be well worth having them reviewed...

2) IRS says you can do either mileage or actual expense. However, if you actual expense the first year, you cannot go back to mileage. If you do mileage the first year, you can go back and forth as you see fit. Note that actual expense is more than fuel (depreciation, repairs, etc...). Unless you are driving a lot of miles I think actual expense works out better...but it may be a good idea do do mileage the first year so it is available to you in the future for that vehicle.

3) Yeah...not sure why I listed chains and files...those would be write offs. I was trying to think of other expenses that are not written off. I do know clothes are not.

4) Read IRS rules for cell phone use. I did and decided that wasn't enough of an expense to raise any flags should I get audited. Lots of paperwork to justify business only use.