EPISODE 189: Prepping for Tax Time with Jenni Laarman
EPISODE 189: Prepping for Tax Time with Jenni Laarman
Today we are talking with Jenni Laarman, “aka Not Your Average Bookkeeping Coach”. Jenni earned her MBA and spent a little over a decade as a public accountant/financial analyst helping large and small businesses understand their numbers. After leaving the corporate world she hopped on the entrepreneur roller coaster. From direct sales (3 different companies) to writing a book, and dabbling in blogging. Jenni has finally settled into her true passion - embracing the numbers nerd she is. She is now the person small business owners turn to when they want to simplify their bookkeeping and understand their numbers to hit business goals without stress and headaches. Today Jenni is going to help us know what we need when it comes to your business and bookkeeping. Let’s get started!
In today’s episode, we talk about:
As a Direct Seller it's important to keep track of all the numbers. If not when you get to the end of the year, you won’t remember what happened in January and you won’t be able to accurately report what you made and spent.
What should you be tracking?
Your commission
Anything necessary, needed, or exclusively used for your business.
Expenses used every month (website, newsletter, etc)
When do you have to report your profit? At $600 most companies give you a 1099. However, you are considered self-employed and $400 is the minimum that needs to be reported per the IRS.
During your first year you may file “a loss”, due to all the expenses. Not fun to think about but that does benefit you from a tax perspective. From year one start reporting it.
Bonus trips - Do you report these? It depends on the type of trip. Is it all fun (trip for pleasure) or will you be attending seminars while on the trip?
What is profit?
Look at what you earn in commission ($500).
Look at expenses ($100)
$400 in profit ($500-$100= $400)
Profit margin, take your profit and divide it by your commission ($400/$500=.8 (80% profit margin, 80% of the commission you are earning is going into your pocket)
It’s so important to keep track of your numbers.
Wealth and Worth Members get a Wealth Tracker which is a great tool! (www.rachelaperry.com/wealth)
What can people do now to get ready for tax season?
Figure out what your income is?
Determine your Business Expenses?
Jenni has a Tax Prep Workshop - 20 minutes with a workbook. Totally FREE!
At the end you will have everything in place to file your taxes
The sooner the better. Don’t keep pushing it off. When Tax season comes you will be ready to go!
What would you say to someone ready to start their own business?
You need to find a business coach who has been there and done that. Don’t waste your time and energy on things they’ve already been through. Use this as a business expense!
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