Question by maidsrus02: How do I go about filing taxes for a small cleaning business?
I own and operate a home/office cleaning small business. I don’t make that much,…but, I’m sure I have to pay taxes on what I have deposited in the bank. Plz, does anyone know how I go about it? I have not kept track of mileage or supplies.
Answer by Michael L
It depends on how you operate your business. Let’s assume that you are a sole proprietor. Then everything you deposit is income, but you have to really start keeping track of your expenses. Mileage, cleaning products you purchase, advertising you do (business cards and fliers), cell phone, uniforms, auto repair, etc.
If you haven’t been keeping your receipts you need to start doing so now, for next year. If you’re not using a simple bookkeeping program like Quicken then you need to start at least keeping a daily journal of jobs you do each day. your starting mileage and ending mileage for the day. Any money spent on the business. Keeping the receipts in an envelope with the items circled that you used in your business. Keeping your cell phone bills. etc.
I also suggest, if you are going to continue with this, that you open up an LLC, get insurance (you’re working in other people’s places of business and homes. If you break something how do you pay for it?). It is best to sit down with a good business coach, if you don’t know one, message me and I’ll connect one with you. One that can set you up to keep good records, and help you with your taxes so you can keep the most of your money that you can.
What do you think? Answer below!