Collaborate on Self Employed Invoice Template for Hours Worked for Finance with Ease Using airSlate SignNow

Self employed invoice template for hours worked for Finance

hello welcome to the first video for the accounting spreadsheet so when you go into your spreadsheet you'll see one - one sole proprietor income statement that's for if you have not formed a business you're just working for yourself maybe you got 1099 you can use this spreadsheet if you're the LLC you've created an LLC be sure to watch at least watch the video that goes into more depth on this spreadsheet so that you understand it because it's how you should be keeping your records for next year so here we have the spreadsheet now I'm gonna show you you can expand this spreadsheet as much as you need so to get started I wanted to keep it small so that I could talk about it in one place so first of all you can just go through your bank account is what I typically recommend or all of your accounts at the same time and start with January and go into all of them and enter the income amounts and if you keep track and you want to put in every little detail like every customer every service you can add lines here but make sure you add them above this bottom line and then it will stay in the calculation so for example you click right here on 11 and then you hold down and drag that I double click and I go insert 4 above always do above because it will stay in the calculation you won't need to reset it so you can expand this as much as you need the way you enter your income in here you can do it whatever makes sense you know this years gone by so I recommend updating this spreadsheet as quickly as possible so that you can get on to the next things in your business so if you used an invoicing software and you know that you have all of your income in there you could just put invoice software or a merchant account maybe you stripe or something you know and then just put the totals by month or if you're really in a rush you could just put the full amount right there but it would be nice to look at the amounts by month so as you can see it goes January February March April May and then there's a total for the whole year so your total income shows on this row for each month and then the total expenses here and then net income which is your total income minus your total expenses so maybe you had five clients throughout the year or you get five 1099 miscellaneous a--'s from different people you could enter each one of those here and then just put the total in whatever month you want maybe approximate what month it was kind of related to so if you have more now down here business expenses any cost that you spend related to earning that income qualifies as a business expense the way to tell I know I said this in the first video if it doesn't qualify as if it's personal if it's personal hair nails it doesn't qualify no matter what you can put it in but the way you know is because you get personal benefit from it as well so it's a good example do whatever you want but just let you know so I'll go through some of these ones I put here office supplies that's a big one whatever you use for online resources you know Squarespace WordPress anything that costs money any advertising that's a big one anything you spend there often people have a lot more expenses and they realize when you actually go through your accounts and and put it out you know training you do for your business now research and development this is a big one because a lot of times people have this but they don't realize it so if you [Music] maybe go to another business that's like yours and you travel somewhere for that to see that business which might be something you're doing for pleasure but that would qualify as a business expense so if you're a hairdresser and you go to a certain salon somewhere because you're really inspired by that and you wanted to see what they do and learn from them and you're getting your hair done like that would qualify as research and development you just have to document it and for all of these expenses the way you document for taxes is you just get the receipt and you write the business purpose on the receipt so photographers if you're getting your photos done anything you rent for your business whether a work location or an office location travel to do education to travel for any business purpose you know if you're doing something there that's business-related then the travel is all deductible now if you have some days that are personal then when it comes to taxes it isn't all deductible but when it comes to your accounting you can certainly put it all as business expenses and pay for it out of your business now meals and entertainment again for taxes that one isn't fully deductible but it's totally deductible on your accounting side and you should take it because taking people out for you know meals and entertainment is a very common business expense all sorts of corporations and companies use it and you know it's a good way for small businesses to treat their business like a true business so then on the spreadsheet you'll have your total business and again you can add in you just select and drag down double click insert five rows above you can list out all of the expenses you had like you don't need to do office supplies you could say like whatever it is that you purchased especially if you have a bag of receipts you're going through you know you could add a lot more lines that's okay you know whatever makes sense for you and I will be linking some other videos on organizing those receipts later on alright so that's it for your income and expenses in the next video I will be talking about the LLC and the differences with an LLC you have to have a separate bank account now when you're self-employed as the sole proprietor I do recommend using a separate bank account it can be simple if you get it at the same place your personal bank account is that but it does make things easier such as all of this if you used one pink account for all of your income and expenses it would be a lot easier and I know sometimes people can say it's hard but the more you treat your business like a business it will make it easier to make more money and therefore it will be worth it alright I'll see you in the second video about the LLC thanks for watching let me know if you have any questions