Tax time doesn't have to be a nightmare just because you've started your own Avon business. With a little guidance, you can have everything organised and ready to go come April 15. Taxes only need to be filed if you show a profit after your expenses of £260 or more.
Begin at the Bank
It's so much easier to keep up with what your business is doing if you keep your Avon money separated in a second account. Most banks offer free business accounts if you already have a current account. Deposit your checks from Avon (Leadership or Fast Start checks, for example) and the money from your customers.
Let Avon Help You Keep Records
Keep track of your Avon expenses by neatly filing your purchase orders alphabetically in a file cabinet. Every other week, Avon keeps track of what you've spent on brochures, samples, business supplies and demos that you've purchased. Highlight the expenses.
Keeping Track of Expenses and Travel
Open a spreadsheet. At the top, make a heading for Avon supplies. In this column, write down all the things you buy from Avon for your business. Put a column for mileage; it's best to keep a little notebook in the car and write down the before and after odometer readings each time you go out for your Avon business. If you take prospects or customers out to lunch for meetings, you can deduct the cost of the meal as well.
Keeping Up With Other Business Expenses
Keep track of your postage, your office supplies (things like paper, ink and file cabinets) and other things you buy to use exclusively for Avon. If you have a busy business and add a second phone line or Internet connection, you can deduct those also. If you buy a vendor's or business license, that is tax deductible, too. Make sure you keep all of your receipts. Put the amounts in a column titled Other Business Expenses.
All Tied Up in a Bow
With a spreadsheet program, all you need to do is list the items outlined here. If that's all you know of bookkeeping, that's enough. Burn this information to a CD or print it out. Bring the whole thing to your accountant.