Home business accounting can be new territory for one who has been an employee and is just now starting with a home internet business.
I often get emails from subscribers asking me things like “How do I handle paying taxes with this?” or some such similar thing.
It is very simple:
Track all the money you spend that is business related and keep all receipts. Track all the money you make.
When tax time comes you’ll either hire an accountant or you’ll do them yourself, probably with a program such as TurboTax.
Sounds easy enough right?
In the video above I show you how I go about doing my accounting so that it’s not such a nightmare when tax time comes. There are probably better ways to do this, perhaps with a fancy accounting program such as QuickBooks, but this is how I’ve been doing it for years—just using a simple spreadsheet—and it works just fine.
This method also doesn’t have any learning curve to speak of because you’re just using a simple Excel or OpenOffice Calc spreadsheet.
Hope this helps!