The Small Business Tax Help Blog

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Question: Best way to organize tax?

I’m about to start an online clothing store, and I need to know the best way to keep track of my expenses for tax purposes next year.

Let’s say I sell a shirt for $20 to the customer. The shirt cost me $10 in the first place, so I get to keep $10 as profit. (This is only hypothetical.)

Do I….

A) Record this transaction as $20 profit with $10 business expenses and report it that way.

B) Record this transaction as $10 profit only and just report that.

I am guessing that it’s Option A, but I want to make sure.

Thanks!

Answer: You guessed right, option A. I suggest you purchase Quickbooks or similar software to keep track of your expenses, as well of revenues. Quickbooks if very easy to use, and can be set up similar to the the schedule C (the tax form filed by self employed individuals.)

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SutiProcure, a SaaS solution, simplifies the process of purchasing Goods & Services and empowers employees to purchase based on strategic suggestions. Los Altos, CA (Vocus/PRWEB) January 11, 2011 SutiSoft Inc ., a trusted provider of hosted and enterprise solutions today announced the release of SutiProcure, an online Procurement solution enabling employees to procure Goods and Services from the …

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