Tax Season & Proof of online expenses?

avatar33

avatar33

e-Hustler
Dec 5, 2009
3,838
52
48
Calgary, AB
Alright, so 2010 was my first year "officially" in business. Before that let's just say that my shit was very "under the table" since I was in a different country every 6 months. Anyhow, these past few days it has been a nightmare to collect all my documents, receipts, invoices and shit to give to my accountant. This is driving me nutts.

How do you guys manage everything? My accountant is saying that paypal receipts are "okay" but not recommended. She's saying that from now on I should ask for some sort of invoice from any online vendor. She says that if the vendor is unable to provide an invoice, I should print the online conversation I had with them as a proof. This is really annoying.

How do you guys (who are registered as an LLC or Sole Proprietor) deal with all this shit? What kind of proof do you provide your accountant when you buy services from the BST section here and from other online vendors on other forums?

BTW, I recently discovered ShoeBoxed, anyone using this website to manage their expenses? It looks interesting...
 


I just filed.my llc.this year. But here's what I do ...

I buy shit for my biz w.mycheck card ands card and paypal. I print detailed.statements for each method, then circle what is a biz.expense. I hand it over to my accounant and it'd a done deal. Fuck. Cash and physical reciepts all my shit is.online and I just have to print it.out
 
Same here... try to do everything through 1 business credit card and PayPal sparingly then add it all up come tax time and deduct from my income.
 
I haven't been called to the carpet yet on this but I agree with you on the paypal stuff. I just use my bank statements and paypal to use as proof because I've had receipts that handled over time have lost their ink and you can't even see who's it from, the date etc.
 
but 99% of the services in the BST section and on all forums in general only take PayPal. In your CC statement it just shows PayPal and the total amount paid. How do you remember what it was for? (Ex.: PAYPAL INST XFER 9H7A24SKMC7U6 WEB ID: PAYPALCDIC)
 
For proof, I use CC statements + an email folder containing invoices from online purchases/expenses. For the SBT stuff, ask for invoices. Could also 1099 to claim as freelance work.
 
Had the same issue. Shit starts to add up and the IRS is a bitch. LLC that shit and write off everything. Put your wife,kids and sister on payroll and write that shit off too.
 
Flashfire said:
Had the same issue. Shit starts to add up and the IRS is a bitch. LLC that shit and write off everything. Put your wife,kids and sister on payroll and write that shit off too.
Click to expand...

lol ! wow, that's hilarious but on a serious note, just add notes to your paypal transaction to highlight that it's a business transaction.. that could help you to separate those transactions and your other ones if you're using the same account for business paypal transactions and non business as well if that makes sense.
 
For paypal, I look at the names. The more indian it sounds the mire likely it was a payment to someone from the bst ... ferreal
 
You must log in or register to reply here.
Top Bottom