I’ll admit that I’m very much detail oriented and a bit of a number cruncher. Fortunately, this works out for the girlfriend because I actually enjoy the buzz and positive stress that tax time brings making sure everything gets wrapped up and filed away. Having run my own business for the past several years, I have a number of system that help keep me organized.
I thought I’d share this post since I know there are a lot of Stylist’s out there that operate this more of a hobby than a business. While there is certainly nothing wrong with that, it’s possible you might not be tracking your expenses as best as you could – which is probably costing you money come tax time. Even if you do not have a registered business, you can still deduct expenses from your commission income. Keeping a detailed record of your expenses every month is a great way to save money at the end of the year.
Depending on what country you operate in, expenses such as up to 1/3 of your rent or mortgage payment, your Internet and phone bill, etc. can all be paid in before-tax dollars as a business expense. You can even expense a trip every year if you decide to go to Hoopla. This can save you upwards of thousands of dollars every year in taxes that you do not have to be paying.
Some of the expenses that you should be tracking that you might not be, include:
- Half of your coffee/meal expenses if you take a potential Stylist out for dinner/coffee.
- Your monthly meeting expense if your Stella & Dot group meets somewhere that there is a charge involved.
- The milage on your vehicle when you use it to drive to trunk shows.
- The taxi fare that you spend when travelling to trunk shows if you don’t use a vehicle.
- Your family’s printer ink that you use to print out promos for trunk shows.
And the list goes on. There are some obvious charges involved with Stella and Dot that most people will record, but there are some that get lost in the hustle of every day life – and that’s where the real savings are.
To make your life easier, I want to share the expense tracking spreadsheet that I built for my girlfriend that keeps her organized when tracking her expenses. If you set aside 30 minutes every month to fill in your expenses and file away any receipts, etc. you will thank yourself (or your accountant will thank you) when you need to file your income tax returns.
To get your hands on a copy of my spreadsheet, simply join my mailing list below and it will be emailed out to you. I should make a little note and disclaimer that I am in no way an accountant or tax professional. I’m just someone who has had to file a self-employed tax return for the past several years.
If you have any questions or wanted to share your experiences and tips with expenses, please leave a comment below – I love hearing from you.