Well here we go again. Can you be a book keeper? Well, how about a good record keeper? When we started this little endeavor we asked, asked, and asked some more questions. Most of the questions, we asked our friend and tax accountant. He handles many businesses’ taxes and accounting problems in the state of California. I need to point out something here, accountants speak a different language than woodworkers. He was asked such questions as: ”what”, “what did you say”, and “what the hell does that mean”? The last I asked the most. The highlights of these stimulating conversations will follow.
The first and most important is to save everything. Your saying, “easy”, right? Not so fast my fellow woodworkers. How many times have you brought a bag home from the hardware store? Do you put it in the shop take out the receipt and walk it into the house? I never had before. A week later, who knows where that receipt is? So, Sue and I needed a common place to put these things. We do, and it works about 75% of the time.
Use the double receipt method. I charge it or write a check for it, then I have a paper trail of my purchases to fall back on. Also, these checking and charge accounts should be separate from your household accounts. Business is business, and household is household and keep it that way.
I have kept everything separate. My shop (garage) is household, and my tools are part of the business. We have done it this way all along. It is a personal choice that has to be made. If you start deducting the use of your house for business you will save a little on taxes each year. But, when you sell this house, it’s a whole new ball game. I won’t go into that anymore. Have a nice long talk with an accountant before you make this decision. It’s a big one that can bite you down the road.
Both cars have tripmeters in them. This is a little thing you think. Mileage is a very large deduction at tax time. We do most of our shopping in Reno and we are religious about using our tripmeters. When we get home, we enter the results of the tripmeters on a calendar. This method works great, but do whatever works best for you.
These topics make it tough to think of the right pictures to post. The last topic I almost posted one of Raymond Burr playing Perry Mason.
Can you believe it’s snowing again? And let’s hear it for: http://www.dustnlint.com
-- Odie, Confucius say, "He who laughs at one's self is BUTT of joke". http://woodstermangotwood.blogspot.com/ (my funny blog)