Wrapping up 2008/Sarting Fresh 2009

Like most of you, it is time to wrap up 2008 by doing year end chores and preparing for 2009.

I have spent the last week or so catching up my bookeeping data entry. I still have to do my inventory in order to be ready for taxes, just waiting for husbands w-2 to start filing.I have been careful to take every deduction that I can legally take. If you have a home office(as defined by the IRS) then you can take a % of your rent/mortgage and utilities, you can claim a % of your phone,cell phone,and internet service depending on % of time you use it for business.You can claim selling fees(craft shows,etsy,paypal,etc),supplies and equipment. The huge one is car mileage.As with all deductions,you must have documentation in case you are audited. I keep a small notebook in my car to note date,purpose,starting mileage,ending mileage, and total mileage.Check the IRS for all of the reasons you can claim mileage.

I will be using Tax Act again this year. It is not near as expensive as some of the popular software. There was on I checked on that was as expensive as having an account do it. Also time to do the 4th Qtr sales tax payment.

I have already added a new worksheet to my Excel files for 2009 expenses,Income,Medical expenses, and car mileage.I have always used the 2 envelope method of reciept control.
I have one envelope(6x9"clasp) for income statements and reciepts, and 1(9x12"clasp) to file
expenses reciepts. At the end of the month, I do my data entry into Excel, then file the envelopes in a folder(2008) in my file box.I am done with those-but have to keep records for a minimum of 7 years.My Excel files are set up to give a running total for each catagory.

Since I do alot of craft shows, I have started a list of the shows that I would like to attend this year with dates, deadlines, cost of show, contact info,etc.

Here is wishing you a healthy and prosperous new year to you all.


Colleen Mills