1. Create separate folders for each of your budget categories:

 

Gross Receipts or Sales

     Can be broken down by client or type of income

 

Cost of Good Sold

     Purchases less cost of items withdrawn for personal use

     Cost of Labor (not to yourself)

     Materials & Supplies

     Other Costs

 

Expenses

     Advertising

     Car & Truck

     Commissions & Fees

     Contract Labor

     Depreciation

     Employee benefit programs

     Insurance (other than health)

     Interest

     Mortgage (paid to banks)

     Legal & Professional Services

     Office expense

     Pension & Profit-sharing plans

     Rent or lease

           Vehicles, Machinery & Equipment

           Other business property

     Repairs & Maintenance

     Supplies

     Taxes & Licenses

     Travel, Meals & Entertainment

     Utilities

     Other; itemize by category

     Business use of your home

 

2. Inside the Folders you will be creating tabs to separate the sub-categories:

 

3. Keep a daily calendar; note who you see, why, & mileage. A week at a glance is very helpful for planning purposes.

 

4. Save ALL of your receipts. Note on them why purchased & to which job the item relates. Keep in daily envelope till entered into your bookkeeping then place in a monthly envelope.

 

5. Be sure to keep in savings at least 1 month of future expense total. Long term savings will be 1 year of future expenses based upon your past average monthly expenses.

 

6. Keep a complete list of clients including name, address & contact phone numbers/email addresses. Keep a similar list of vendors.

 

7. Contact a leasing company to determine if there will be a savings in employee benefits ie: insurance, retirement, workman's compensation.

 

For Answers to your questions:

 

WWW.IRS.GOV     Forms & Publications:

 

     Business Expenses

          Forms: 2106 Employee Business Expenses

                    2106-EZ

 

          Publications: 15    Employer Tax Guide

                            334  Tax Guide for Small Business

                            463  Travel, Entertainment, Gift & Car Expense

                            535   Business Expenses

                            910   Free Tax Guide 

                            4591  Source of Information