Tracking Your Expense Receipts
Now, I would like to go to, uh some of the receipts that you brought in. Uh, if you don't mind, zou, have some, right? Um, does anybody else have any that they want to share? Yeah. Okay. So let's do one of each and then we'll see what we have. Er, what we have time for because I'm only showing, you know, a plush business and, uh, some greeting cards, and I'm sure that you guys have other stuff. I put a little bit of jewellery stuff in my february section. We'll come back, maybe and do some quizzing on this later. Ha. Okay, let's. See, what have you got? So me and theo receipt for, uh, steal, um, that I used to make a ruling bar cart. Okay, so this was paid with a credit card. And, uh, what am I looking at here? We've got two of these sheets of steel, or this is for the cutting flat bar. And then there's also a fee for cutting right to cut, cut it, cut down to fit in my car. Ah, ha. So you have a cutting fee and you have the actual materials. So this would be similar if you work with wo...
od to, like, goingto lows and buying a big sheet of plywood? And then having the guys cut it down into smaller pieces for you for signs for example that you could paint not that your wooden signs come from one but I'm just saying okay so let's take a look at what we've got here uh what's the first thing that we enter you guys date so on here this is december I'm putting in the march because I just that's what's here but you guys will put these things in the right order because you're going to enter everything in order ah and then how should I how should I enter this do you think um steel materials or for your product I want to say bar cart still are they too different kinds of steel that you're tracking for two different kinds of products or two different purposes there for the same uh product for the same in peace they're just different dimensions okay all right so, um we could either say well because they're different pieces let's track him separately let's say um I'm just because I don't know anything about this I'm gonna raid steal piece eh? And the cost of that wass seventy five dollars you got two of them so your total is one fifty now did you pay tax on this? Yes you paid tax on this but you're reselling these whatever you're making this into tables, chairs, et cetera um so where do I put that sales tax looks like it says eighteen thirty three weirdo I where did I put the sales tax? He was like yeah prepaid no you can't because I scrolled down but in column f we have p p prepaid sales tax we okay so that's eighteen thirty three I think their handwriting is not super allegedly no annual fine um so then your total is equal to the cost of the materials plus your prepaid sales tax this was paid with a credit cards visa and because you paid for it on sight it was due the same day yes, and you paid for it on the same day and then what account does this go in material? Yes. Materials and supplies cost of goods sold all right and then we can just copy and paste what we've done here already. Well actually it's probably just easier to enter it again so then we've also got steel peace be which cost is twenty five dollars for each of those you bought two of your total was fifty bucks. Um oh, right. This is you had two different things, so actually you would need to figure out uh how much of the pre paid sales tax went to this uh three one quarter too well and then right yes, the quarters to yes so you can let's divide this buy four and then this is equal to that times three okay um because you're tracking the prepaid sales tax just for the purposes of a sales tax return, um, you don't really need to break it out between the products if you have a whole list of things and they all come go in the same category. Um, if you're buying, like, you know, eighteen different kinds of embroidery floss, you know, the same thing in multiple colors and joanne, you don't need to figure out what the prepaid sales tax was for every single little skein of embroidery flashing and just put it in for the total, um, because that's, not something you need to track per product, right? You don't need to track your prepaid sales tax for product. You're just keeping track of what you've already spent. As for a sales tax, you don't spend it again when you send that return in and jang in july, um, or whatever dated is wherever you are. Uh, okay, so, uh, we've got our total again. Is this plus this, uh, and all of these things are the same? Uh, copy that and pasted in. And then what would you put the cutting fee into that production? Labor, then? Yeah, I'm doing it for me, ok, yeah, so somebody is helping you. Uh it would be production labor under cost of goods sold right not contract labor which is different because somebody is helping you to make this piece that you are eventually going to sell by cutting those first pieces of steel for you um I'm going to give this back to you okay, thank you so much. Thanks that's a great example so cutting labor ten bucks do I apply prepaid sales tax on this? I assume not no, I don't know you don't need thio apply any prepaid sales tax for two reasons one uh you've already taken the full prepaid sales tax and divided it between the other two lines so you don't need to reapply that prepaid sales tax um you also don't need to pay sail sex on services on lian tangible goods um if somebody in this case okay, so let me back up here a second um you don't need to put it in your ledger but if you we're cutting steel for somebody else and you handed them this bill that said here are four pieces of steel and here's how much it cost me in production labor they would get charge sales tax on everything including that production labor because what you handed them in the end was a tangible good um so like if I do uh let's say a custom store window design for somebody um what I'm really doing is giving them the service of making a bunch of things and arranging them artfully and whatever, but because what I'm giving them are those physical pieces that go in their window I am creating objects um for them I would have to charge them sales tax on that whole project including all of my time uh because I'm giving them a finished tangible piece in the end uh if I were doing a web design project for somebody and I just e mailed them the design files when I was done, then I don't charge them sales tax on that project uh because I haven't given them a tangible physical physical good but here's the kicker if I give them those files on a farm drive or on a cd and I've handed them a physical object, then I charge them sales tax on the whole project it's the same project it costs the same, but whether I send it via email versus v a thumb drive or cd makes all the difference in whether they have to pay sales tax on that or not um oh that's crazy it's because our governments have not caught up with where we are has a society they have not caught up with technology or industry like I said, they're some bills in congress trying to change this, but you know how congress is so uh lord knows when we will start having to collect sales tax on digital goods the way that they're doing in europe uh I digress I can get really riled up about sales tax I'm sorry uh, so we've got our total here is ten dollars, still paid with that visa um same dates and, uh we put this under production labor cost of goods sold and then in the notes we might want to mark that all of these are part of the same project side table sad devil said table okay, um did you want to share one let's do just one more to really get good at this and then we're gonna move on ah, you've printed it out. Thank you. Yeah. No, no it's fine there's. Nothing wrong with technology. Uh okay, so this is an amazon order for or so two hangers picture hanger ha saw tooth picture frame hangers for software. Okay, uh you ordered five packages of one hundred is that right? Okay, so what should we enter first? Hear medina date? Yes, alright, january fourth we're gonna pretend it's last year and we will say picture hangers now, eh? Package of one hundred it looks like is six ninety nine, which means that one of them is how many six cents six point nine cents with all right, my dear yeah six point nine nine percent yeah I don't know if it will let me do that point oh six nine nine it's probably just gonna round it up to seven cents yeah okay uh but that's fine we can uh we can make up the difference with like the shipping and handling or something it's fine if you're one penny goes elsewhere um I lose a penny here and there very often when I do that thing with the included sales tax where then I have to back out into a different price in order to include the sales tax in it depending on how much an item costs because it's eight and a half percent sometimes the cost will only come out to either sixteen, ninety nine or seventy no one and I can't get it to back into the seventeen dollars that I need um so then I just make it up elsewhere just put in you know an extra cent for the shipping or something else which I suppose is not strictly accurate but I really don't think it's going to affect your business decisions if you're uh didn't come or your expenses are off by one penny for a month and at least this way everything adds up nicely you know that it's still all in the right place s o seven cents you bought five hundred of them uh for a total of thirty four ninety five doesn't have a period, innit? Okay and you were not charged sales tax even though it was sold well, I don't know where it was sold from probably out of state so you have no prepaid sales tax issue here lovely so your total is still thirty four ninety five so the other thing you can do here in this ledger um is if it's not count you can overwrite the calculation so if you put in seven cents and you put in five hundred um you know you might not get the quite right total that you need to, in which case you could just delete the formula put in what the actual total is right um this was also paid with a visa on the date that you bought it where would we put the materials and supplies? Yeah, cost of goods sold and as a craft or creative professional a lot of your expenses there going to be materials and supplies cost of goods sold um it's probably one of if not the biggest category. Um, yeah, this is probably for all your signs, so I don't know that you need to actually put a note in there for that. Um does anybody have any questions about entering the expenses and what categories you would put things in? I'm gonna quiz you just on a couple of other things here uh, jewelry assembly help what account would that go into production labor cost of goods sold yes production labor costs of good soul judging you in the car uh what about the craft fair helper remember that labor chart when we put all those people in boxes this's a contract labour yes contract labor uh what about the fees that I paid to square that's murder yes merchant service fees okay uh what about the plus I took to a client meeting travel yes travel the lunch I had at that client meeting mills and entertainments yes meals and entertainment the tax preparation I paid for legal professional services yes alright you're on fire jackie's fire uh what about thie scissors brand new scissors product development is a tool office expensive you could put it in either one. Um if you are using the scissors primarily for creating things that do not end up being sold um you could put it in product development um you could put it in office expenses if you're also using it till like I don't know I cut up the credit cards you no longer need or something I don't know um yeah it's wherever you wanna track it um I'm more likely to put it in office expenses just because to me product development when I'm when I want to track how much I'm spending on creating new projects unless I'm buying a new material for that product like if I let's say I want to start getting into um crow shang so I bought crow she hooks in order to develop some new products I would put that in product development but if I just have fabric scissors and a I bought new fabric scissors because the old ones were getting pretty um and I use that on everything and I'm not buying it in order to create new products or to create things that are not for sale I probably just put it in my office supplies because that's how I like to track it um but again it's totally up to you these categories which categories you have are up to you and with minor exceptions what categories you put stuff in are up to you um liability insurance where would I put that? Yes insurance. Um studio rent where does that go? First of february payments until if it's outside my house it would be rental payments if it's in my house it is home office home office in this case you can't see it very well. It says twenty two percent of the apartment. So this is the home office um and then I've also put thes jump rings in here as separate uh items much the way that we did for a while still peace and steal peace be are actually different items um but here I bought a thousand jump rings for jewelry that, uh I want to make and then I have noted, well, I didn't actually note, but I would note in here that two hundred fifty of these are for ah ham charms on the other two hundred fifty or four steak charms for charms. I actually made these, um I didn't with shrinky dinks and sold them for a dollar, and it was such a pain. I mean, it wasn't that they weren't profitable. They were mine early, profitable, but making these tiny little fussy charms for, like, a dollar. And then, like I said, having to do the bookkeeping for each one dollar charm that you send enough to package and ship to someone it was just ridiculous. Um, and bacon terms, so this makes it easier to keep track when you do your inventory that I've split it up into all of these different products, I bought one material that I used across different products. We covered the example where you buy lots of different materials, like your cards and your envelopes and your ink for one product, but you can also have one, uh, material like these jump brings that use across multiple products, in which case I like to break him out by product where possible.