ledger sheets, tax prep

  • Advertise with us

« back to Sweating for Bucks Through Woodworking forum

Forum topic by barringerfurniture posted 01-17-2016 06:26 PM 425 views 0 times favorited 6 replies Add to Favorites Watch
View barringerfurniture's profile


223 posts in 1132 days

01-17-2016 06:26 PM

Topic tags/keywords: business taxes

Anybody care to discuss how they organize and maintain their ledger sheets? What line items does it contain and how often do you post to it? How do you organize and keep receipts and invoices in preparation for tax time? Do you use software?

Also, I’m interested in others’ experiences with tax prep services. Anything to share?

Thanks a lot for any info.

-- Scott Barringer, Sacramento, CA

6 replies so far

View WoodNSawdust's profile


1417 posts in 596 days

#1 posted 01-17-2016 06:55 PM

Off the top of my head:

Wood – internal use
Wood – customer
hardware – internal
hardware – customer
Tools – depreciate
Books, magazines, subscriptions
Office supplies
postage & shipping
Internet access & web
professional services
Computers & networking
advertising, marketing, etc.
meals & entertainment

I always use a professional accountant to do my taxes.

Besides the above categories the accountant also deducts for:
auto expenses by percent
home office (% of utilities, home repair, house insurance, taxes)
prior years large purchases that have not yet been fully depreciated.

-- "I love it when a plan comes together" John "Hannibal" Smith

View JAAune's profile


1614 posts in 1736 days

#2 posted 01-17-2016 07:01 PM

I use Quickbooks for bookkeeping now but used to use GNUCash which was free. The accountant likes to have a Quickbooks file though for doing tax prep.

I organize receipts and invoices by calendar year but mostly keep them for documentation purposes in case the IRS ever wants proof of my expenses. Almost every transaction no matter how minor gets run through the business account so I just need to enter that information into Quickbooks. Even cash expenses are done by cashing a check with a written memo for the intended purchase. Monthly entries are convenient because I can use banking statements to help with the data entry.

Whenever taxes need to be filed I’ll print out whatever reports my accountant requests and turn those in. He does all the work after that.

I’m not going to post my line items because the list is about 30-40 long or so. Quickbooks has the standard lines already setup and I added 15 or so based upon the type of transactions I usually make. Most accounts are broken into subaccounts so I can track where money goes. I know the exact sewer bill and adhesive expenses for example.

-- See my work at and

View barringerfurniture's profile


223 posts in 1132 days

#3 posted 01-17-2016 07:05 PM

Thanks WoodNSawdust.

-- Scott Barringer, Sacramento, CA

View Jim Finn's profile

Jim Finn

2390 posts in 2341 days

#4 posted 01-18-2016 12:08 AM

I married an accountant.

-- "You may have your PHD but I have my GED and my DD 214"

View bonesbr549's profile


1137 posts in 2487 days

#5 posted 01-18-2016 01:56 AM

“CASH” handles most of it. Just kidding. If you are makin a livin at it, an accountant is strongly advised. Someone that can recommend best “LEGAL” deductions and the red flags that will prompt audits.

quick books is a good tool, but should be used over the whole year. Hard to do at this point.

I would not trust tax advice from a woodworking forum either (TIC).

-- Sooner or later Liberals run out of other people's money.

View TopamaxSurvivor's profile


17574 posts in 3095 days

#6 posted 01-18-2016 03:39 AM

I never took any home office deductions in nearly 30 years. It can complicate real estate tax situations at time of sale. Not enough to be worth the potential hassle on advice of CPA. YMMV,

-- Bob in WW ~ "some old things are lovely, warm still with life ... of the forgotten men who made them." - D.H. Lawrence

Have your say...

You must be signed in to reply.

DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics