Organizing Income and Expenses
Owning A Business It Is Important To Keep Track Of The Income & Expenses
Tax time creeps up fast and if you haven’t been keeping track of what is coming in and what is going out monthly, then you will have one big job at the end of the year!
It doesn’t have to be hard.
Here is a very simple method that can help to keep things straight and distressed at tax time.
I used two cheap plastic trays and labeled one “Expenses” and the other one “Income”
They fit in the white cubby unit I have beside my chair, but you don’t have to have them in there of course.
I then get 24 manila folders and label them Jan – December “Income” and Jan – Dec. “Expenses” with the year. It doesn’t have to be labeled fancy or with a labeler. A sharper might have been better than just an ink pen like I used though. I wrote OWS for Organize with Sandy, the month, year and either expenses or income on each one.
I then take all but the present month and put them in a file folder in my file. Yes.. they are all empty at this point.
I place the present month on the appropriate tray. (you can see that in the pic above with the trays) Now… you could just stop there and grab that envelop every time you have a receipt or a payment come in. But .. we all know the easier it is to access.. the better success rate we have in doing it. Right?
So I made these two folders.
I put the folders in the trays on top of the envelops.
Each time a payment comes in or I have a receipt, I just slip it in the folder. When it sits there.. they are just slightly opened and it makes it nice and easy.
The tray below I use to place anything else that I need to file in my business files.
At the end of the month, I make sure that I take all the info and put it into my spreadsheet online.
I made a simple spreadsheet in excel. I make the template and each month I can bring it up, add in month at the top and fill it out. There are a couple of expenses that are the same each month, I added those in so I wouldn’t forget, such as hosting payment and phone expenses.
It really only takes a short amount of time (depending on the amount you have coming in or going out each month), but shouldn’t tae you more than 1/2 hour each month.
Then put those receipts in the given manila folder for that month. Done!
Tip: I leave the month previously out also. It seems there is always some stray receipts in your purse etc.. that will need to go in the previous month. It just makes it easier if the envelop is right there rather than walking across a room and opening up the file drawer to get it.
So for March, I would do my March expenses, place income in the income envelop and the same for expenses. I would then take my “January” file folder (that should have gotten any strays in it during Feb.) and file it in the drawer. I would then take out the previously prepared March Income and March Expense envelop and place those on top of Febuary… and under the colorful file folders. Ready to go.
Simple – nothing fancy – nothing complicated – You can do it kind of thing!
There are of course Many ways to accomplish this. Here is a way I tried at first, but it didn’t’ work for me. I was going to use a “drop in” method. I think this would be a great way to do it too. Nice and easy. It didn’t work for me because I had them in a cubby unit by my chair. I had to pull it out to put full size sheets in. Just too cumbersome to flow easy in my office. But I think it would work great if it sat on top of a desk.
Your Mission if you chose to take it is: Reorganize Your Income & Expenses!
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You can find the linky by clicking on the button above or going to my Organizing Mission Link Party. Feel free to keep linking up your different office projects that you accomplish during this Office Mission. I am ok with also linking up organizing projects that aren’t office related. This link will be up until Feb. 24 so you will have time to add your office projects in.
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