How Bookkeeping Makes Taxes Easier

Having a bookkeeper can make filing your taxes MUCH easier!

If you own a LLC or Sole Proprietorship, you file a Schedule C tax form.

There are five parts to this form:

  1. Income
  2. Expenses
  3. Cost of Goods Sold
  4. Information on Your Vehicle
  5. Other Expenses

My job as a bookkeeper is to take EVERY SINGLE TRANSACTION you make in your business accounts and categorize it so that it falls into these categories.

Here’s a real-life example of how this works:
  • You purchased materials from Hobby Lobby
    • 38. Materials and Supplies
  • You bought flyers from Moo.com
    • 8. Advertising
  • A client bought your product
    • 1. Receipts and Sales
  • You pay your landlord
    • 20. Rent or Lease
  • You pay your bookkeeper for categorizing all of this
    • 17. Legal and professional services

As you can see, these transactions start to add up quickly. My job is to categorize them on a weekly and monthly basis so that when it’s time to file your taxes, all you have to do is take the report I make to your CPA.

Want to hand this task off to someone else? 

Get a FREE Review of Your Books!

Want to know how much it costs? Check out our Services and Pricing.

Blessings,

Valerie Johnston