The Schedule C Tax Form
If you own a single-member LLC or Sole Proprietorship, you file a Schedule C tax form along with your 1040.
There are five parts to this form:
- Income
- Expenses
- Cost of Goods Sold
- Information on Your Vehicle
- 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?
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Blessings,
Valerie Johnston