Record Keeping
DISCLAIMER • This presentation is not tax advise • Consult your tax advisor • This presentation is not legal advice • Consult your legal advisor • This presentation is not financial management advise • Consult your financial advisor
Why Keep Records • Help get you where you need to go when you need to be there • Helps avoid conflicts (spouses & others) • Easier to complete taxes • Stay out of jail • Stay out of trouble • MEMORIES FAIL
What Records to Keep • Assignments • Schedules • Income • Expenses
How to Keep Records • Electronic • Computer • iPad • Other electronic device • Paper
Electronic Record Keeping • Computers are your friend • Excel spreadsheet • Organize spreadsheet to provide you everything you need on daily basis and at end of year
Sample Spreadsheet • Maintain on monthly basis • Items to record • Assignments • Schedules • Income • Expenses
Assignments • Use Arbiter or other schedules you’re given • Day -- Date • Time -- Location • Type assignment -- Partner • Role • Pay • Amount • When paid • How paid
Schedules • Clinics • Meetings • Other events requiring your time
Income • Match fees • Travel fees • Per diem and other income • Important to have a method to record how much you were paid; if you have been paid, when you were paid; how you were paid.
Expenses • You may deduct all expenses that are reasonable and necessary to produce income from your job (avocation) • Relate expenses to IRS yearly reporting
Car Expenses • Record actual expenses OR • Take standard deduction • Parking fees & tolls • Use for overnight trips rather than daily trips
Commissions & Fees • Commissions you pay an assigner or organization. • Dues • Memberships in professional organizations • Camps & clinics • Computer programs you pay to use (must be related to avocation)
Insurance • Not health insurance (usually) • Generally liability insurance or other business insurance
Legal and Professional Services • Bookkeeper or accountant • Legal services • Financial advisor • Tax advisor Ordinary and necessary expenses directly related to operating your business (avocation).
Office Expenses • Postage • Other things related to maintaining an office or records related to your avocation • Copies and binding • Notebooks
Pension and Profit Sharing Plans • SIMPLE IRAs • May be able to claim here or may have to claim on 1040 • Could be one participant retirement plan (seek tax advise)
Repairs & Maintenance • Incidental repairs and maintenance • Dry cleaning • Tailoring
Supplies • Incidental material & supplies for which you kept no inventory or record of use • Equipment (whistles, cards right height, etc.) • Uniform items • Shirts • Slacks (if used only in avocation) • Shoes • Belt
Travel & Lodging • Lodging and transportation expenses connected with overnight travel for business • Airline, bus, or rail tickets • Hotels • Shuttle service • Hotel or airport parking
Meals & Entertainment • Reasonable and necessary (many prohibitions) • Can deduct actual cost (receipts necessary) or use standard deduction (IRS Pub 1542)
Utilities • Can deduct if directly related to producing income in avocation • Cell phone • Extra phone line • Internet service • NOTE: Generally cannot deduct basic service or primary phone line
Mileage Deduction • Commuting Miles (not deductible) • Travel between home and work • Personal Use (not deductible) • Self-explanatory • Business Miles • Travel necessary for business
An Example You have an assignment at Any HS and will travel there directly from your job. The total miles you drive that day is 78. It is 28 miles from your home to your job. You may deduct 22 miles for business travel. You have 56 commute miles. If you go home before going to your assignment, your mileage from your home to your assignment is normally not deductible.
Aids for Mileage Records • Mileage log from standard templates
Mileage Log Template
Aids for Mileage Records • Mileage log from standard templates • Mileage log from office supply store
Mileage Log Office Supply Store
Sample Spreadsheet • Monthly record • Yearly summary of mileage and income • Expenses EVERYTHING KEYED TO IRS REPORTING
Summary • Keep good records • Use records as an aid • Income tax • Notify partners • Keep you on time • Can use to answer who, what, when, where, why, & how • Share records with those who need to know to keep you out of trouble
Questions ???
