QuickBooks Self-Employed Basics for Business Owners Online! | Jerry Banfield | Skillshare

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QuickBooks Self-Employed Basics for Business Owners Online!

teacher avatar Jerry Banfield, Teaches 105 Skillshare Classes

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

12 Lessons (1h 2m)
    • 1. Welcome to easier business account and taxes online!

    • 2. Connect bank accounts, PayPal, and credit cards to get real time data

    • 3. What makes Quickc Books Self Employed Awesome is live business profit reports

    • 4. Invite an accountant to help with getting your QBSE setup

    • 5. Setup transaction rules to avoid hours of work using spreadsheets

    • 6. Use profit and loss reports to track income and expenses daily

    • 7. Tax reports show US schedule C expenses all year

    • 8. Using QuickBooks SE to assist with filing taxes

    • 9. I work a little bit at a time on my taxes for months

    • 10. Paying my estimated taxes during the year

    • 11. Microsoft Excel exports for entering many transactions in TurboTax

    • 12. Project for QBSE is to show what you did using this class

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About This Class

Enroll in this class about QBSE to see how I use QuickBooks Self-Employed to track all of my business income and expenses in real time as a US based sole-proprietor business owner!  Learn what has taken me 5 years to discover in making my taxes easier in just an hour!  See the tips and tricks I use to maximize my profit and plan my entire life around my business.

Enjoy in this class a look inside of QuickBooks self-employed and get 50% off when you use my link at http://fbuy.me/dGXHJ.

Meet Your Teacher

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Jerry Banfield

Teaches 105 Skillshare Classes


You can become a MASTER OF DIGITAL MARKETING by following me on Skillshare and watching my classes each day!

BIO: 6 years sober, 4 years plant based diet, 7 years married, 4 years parenting, and 9 years as an entrepreneur online with 103 video classes on Skillshare, 21 books, 1082+ blog posts, 2,500+ YouTube videos, 1,000+ podcast episodes, and 70 songs on iTunes/Spotify!

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1. Welcome to easier business account and taxes online!: Welcome to QuickBooks, self employed for US business owners online and rolling this course if you want to see how to use QuickBooks, self employed to make doing your taxes so much easier, especially if you're US based freelancer or sole proprietor. Business online. I've had a business online for five years, and QuickBooks, self employed, has helped fantastically for me to make improvements in my business. I am grateful. I've made a profit every month that I've been using QuickBooks self employed because it helps me track accurately my business income and expenses in real time. I'm able to see each day in each month exactly what money I'm making and spending through my business. That accountability is really helpful then for making a good business online. And now all I have to do it then of the year is take all of the data I've already looked at all year and just put it straight in the turbo tax and all of my business taxes done in no time, I won't need to hire a c p. A. I won't need to spend hours doing it all at the end of the year, trying to figure it out I have a easy solution here. If you would like to try QuickBooks self employed, I think if you're doing any freelancing online, this is a very good idea, because when your business grows, you want to already have this in place. Years. 50% off coupon on my website at jerry banfield dot com slash resource is if you find the QuickBooks self employed link and you click on the save 50% then you get 50% off for six months. I think it's only like five or $10 a month with the discount, and then I get a referral bonus also from QuickBooks. I'm honored you're here in this class with me. When you enrol, I'll show you the basic features of it and how I'm using it today. 2. Connect bank accounts, PayPal, and credit cards to get real time data: the main value of QuickBooks self employed is the fact that I can then add my bank accounts . So if I click connect another account here, it gives me all of these different accounts. I can add in that. Then allow me and you can just search. So if you don't see your bank as one of these up here, you can search and then it allows you to automatically pull all the transactions in. And that's what's awesome. No more spreadsheets at the end of the year, no more not knowing whether you could write this off all year and finding out at the end of the year. You look at your expenses in real time, you categorize them going forward, and then you've got automated data and this is awesome. So what I did, I put in my business bank accounts, and that allows me then to just isolate everything that happens. And those accounts is either completely for business purposes or is split on business purposes. So that means, for example, my Internet and cable bill. At home, I use a significant portion of that about half for my work because I have a home office and then the other half of it. I also have all the cable TV channels, which obviously I don't need for work. So I then have half of that bill for personal use half of that bill for business use. And this is all really straightforward, then, in quickbooks self employed. If you make most of your money through pay, pal, you can connect your PayPal account. It will get all the transactions in. If you then have a business bank account, you can connect that. And then the beauty of it is if you have business credit cards you spend money on, then all of your expenses and all of the money you earn will be all in the same place. And then you can make those, Ah, nice reports live any day you want to, just like I showed you. And then at the end of the year, everything is done for your taxes. All you have to do it is go through and do your relatively simple by comparison, personal taxes. If you think personal tax overwhelming, the business taxes are much worse and you want your business to grow. This is a perfect scalable solution. You see, I've got a business that's managed hundreds of thousands of dollars of payments and my taxes this year going to be easier than ever. You might not think this is worth your time to set up if you've just started freelancing online. I think it's really worth it, though, because of the ability to track the income and expenses and then to track the taxes as you go forward. 3. What makes Quickc Books Self Employed Awesome is live business profit reports: thank you very much for enrolling in QuickBooks self employed basics with me. Jerry Banfield. This is the inside of QuickBooks, self employed by into it, which is the same company it does. TurboTax. I love this program because it has helped me to see exactly how much money I'm spending in making in my business. Seeing exactly how much money I'm spending in making is allowed me and motivated me to do better, emphasizing my income and reducing my expenses. When you don't see the money you're spending or making, it can be really easy to get these ideas that don't match with reality. For example, you feel like your business is doing really well. But when you look at the money, you're actually losing money or you feel like your business is doing terrible and you're actually making good money or you think you can deduct a bunch of things. But when you go to put them in, you might find out why you can't deduct that QuickBooks self employed will force you to learn, especially if you're based in the U. S. However, there may be versions of this in your country. Your country might have a simple tax code where you might not need this for tax purposes, but it helps to see all the income and expenses in one place. What I do is, I go in and this is the main landing screen, so to speak. And what you do to get started is you connect your business accounts in order to get the data in here. The real value of QuickBooks self employed is that you can add accounts and then it pulls all this data automatically. So if I go to me, this is one of the coolest things about QuickBooks self employed. So I can very easily you ask Gerry, how is your business doing this year? And I I can show you exactly how it's doing right here. If you go over here, I can show you this and I can show you this every day in real time. This sound my business is doing today Total of 489,000 income. I can show you exactly what I've spent money on on any day of the year. I don't have to wait till my taxes at the end of the year. I can show you exactly where everything, all the money has been spent and then I've got a net income and then I've got other expenses. Some of these I haven't categorized yet, so I've got this every day, and that's what's so cool about this. This also shows me the estimated taxes I need to pay instead of just paying and then catching up with the end of the year. This keeps me current all year long, which, if your business grows, you really need to stay current on your taxes. In order to get all of this data, you need to first connected counts, so I'll show you how to do that neck. 4. Invite an accountant to help with getting your QBSE setup: I appreciate you continuing and getting started in this course before you go any further, I would like to mention one key thing. This course is here to be helpful and useful for you. It's not intended to position me, is a tax expert or anything like that. Everything I tell you is the best of my knowledge based on learning it as a business owner , I am not a certified public accountant. I have no formal education outside of a high school class. In accounting. I am not to be taken as an authority figure on any of the advice I give you. If you see something you like, I might go double check that if it's helpful for you. If you see something you don't like, please use that as motivation to learn about it yourself. If you don't like how I do something with my taxes, take a look and learn about how you can do it best in a way that you're happy with. If you would like some help with this, QuickBooks has a way to invite an accountant. I would guess that with a little bit of help from Ah see P. A. A certified public accountant or with a little bit of help from someone who does have good accounting experience that you then would have the chance to have any of your questions answered and have your QuickBooks self employed set up in a way that you can manage it on an ongoing basis without having to spend thousands of dollars to get an accountant to help you at the end of the year. This could save you a ton of time, a ton of money doing your taxes if you set it up the way I've got set up. And that's why share it. I give my opinion. I show you honestly inside how I do my taxes with having Onley Googled things and asked my friend, who has a bachelor's degree in accounting for help, and that's the basis for how I go through and teach this class. I find I learned best from that myself. I often have a hard time learning about health from a doctor because the doctor knows so much about health. It's almost hard for him to relate to me, an earth person who knows very little about the human body. Same thing with this I find it easy to learn. I've learned a lot from other people just like me. So I have motivated to share something here that I hope it's helpful for you. If you don't like anything, that's a good chance to go. Learn more about it on your own. If you get excited, want to give this a try? I think you might save a lot of time. Ah, lot of money and have a lot more knowledge about your business as a function of being able to use QuickBooks self employed. 5. Setup transaction rules to avoid hours of work using spreadsheets: What I love about QuickBooks self employed is that once you add your bank accounts, credit cards, AARP a Palin, then you get a list of transactions in your list of transactions. Allows you to put everything in the right categories for your taxes. It allows you to see what you're spending in each separate area. Their transactions then becomes the foundation of your ongoing working QuickBooks, with most all of it being done automatically. I'll show you mine right now. So what I've got here this is a list off the expenses and of the income I've made in my business. So it's November 2nd today. You see, I made a cash payment technically in Bitcoin to a contractor for work on my Amazon books. So I've got the expense here, which I entered in cash along with the information. So I've got the total amount, and then the contractors agreed, 20% fee, and then I've got the income credited directly in here on Amazon. So it shows the dates on everything in here along with the income, and then it's all categorized. So when I look on my taxes, this charge to Michel Guerard is a contract labor payment as a part of our contract working on the Amazon books and then under here These are all business income, then from Amazon. And the nice thing this is all automatic then. So when these Amazon accounts come in, most of these air done automatically. If you see this little green rule box down here, this allows me to automatically put in one set of transactions, for example, and I see a Amazon a ch credit. Then automatically these go in as business income. That saves me a ton of work classifying my income. And then when I get certain things like this demand miscellaneous payment, then I can manually go in. And I've got the categories down here to choose from. So I chose in their business income. And then when you get something for the first time or that new that's not categorized, then the question comes in. What do you want to call this? Do you want this business personal or split? What I do, Then I click business and then, by default, it gives the sawfish package office suite over here. And then what I can do is pick any of these schedule C expenses under here advertising assets, and it thinks it's an asset under here. But this is a subscription. This is as far as I can see. Mawr, like an office expense, the usual necessary expenses. I have to maintain my office on an ongoing basis, so it's then similar to like a magazine subscription that you might have for magazine copies in the front office if you have a physical location. So I put that in the office expenses category, and now I can add rule on there. Now. All of these little details are not that important. The main thing that's important is you get all of your income tracked correctly. So when someone pays you, you put that in. The main thing that offends as far as I would think. The government, according to what I've read, is if you don't report income, you get that to them is the biggest violation you can make and going through and categorizing your expenses. It's important to do your best. Read up on the rules, figure it out as best you can, but this is an area that's very much creative work. You can get opinions from all over the place while you have this subscription that allows you to export were documents in the pdf now is an office expense is an asset is it's some other kind of expense. The exact category you pick should be as accurate as possible. But at the same time, you also don't want to spend ah Thanh of time and energy trying to debate, which goes in what category. I recommend doing your own research reading up on what's commonly associated with these category. But this is not something that should trigger an audit. Fear anything like that if you get audited, they're not going to care that much if you put the office expenses in one area or another now, yes, you can have little problems. But as long as you're reporting your income and your expenses accurately and honestly as possible, there's obviously human error and and you can always hire a C p A. To give you advice if you want the help that way. So if you would like to do that, go for it. I do my best with these on my own. According to the software, my odds of getting audited are pretty low. I'm paying my taxes as on all the income I make. So I just try and do my best research. Each of these categories learn about what is commonly put in these categories. And then from there I go forward. So, like on this one, this is my frontier. So this is for my Internet and what you've done. You can see here, I've got this split. So this frontier is split into business and personal use. So I've got a rule that you can see when I click the rule. It comes up. So the rule is that it's split 70 30. 70% is spent for business. The other 30% is personal. This is my home Internet phone and cable. The biggest part of this bill is the Internet, the Internet. It is probably about 80% or so off this bill, which would then leave If you do the math like 60 ish dollars for the cable and for the phone. The phone is exclusively for the business toe. Have that extra phone number in case I need it for business things and then the cables exclusively personal. What I've done is split this 70 30 then 30% of it goes to personal spending. In other words, the part I'm using and my wife and for non business things and then 70% the majority of it , especially the high speed Internet I have is for the business, so I can upload files rapidly among computers, upload quickly that way. So I've got this rule here that then automatically puts it in. So what I can do now is going on and pick a category. Now. This fits several categories. I could probably call it advertising because it's a necessary expense to put my videos online. I could go down here. I think I could call it an office expense. I think I could go down there and call it utilities. So what I'm going to do is just put utilities on here as the category, and now that rule is up there, and when the frontier pay comes up, it automatically goes toe work that way. So I've got this split on business and personal, too, because the main thing when you go through do these transactions, you want to be able to sleep at night. I feel like it's honest. You can see $98 of my cable phone and Internet bill is put towards my personal spending, so I'm not getting to deduct that from my business income. Meanwhile, $229 is put towards the business spending, so I feel that in the face of any questioning, I feel good about these numbers. Obviously, the Internet in my home and the cable get used for personal use. The majority of the use is for business, so the majority of the spending 70% is for business, and then 30% is for personal. So QuickBooks, self employed, makes things like this really easy. When you try and go through and do all of your taxes at the end of the year and you don't have all the records together, it's really easy to short cut things and just say, Well, I mostly use that for business, so I'm going to write all of it off. QuickBooks, Self employed allows you to take the time to split things up in a more effective way. So then, when the end of the year comes and all this is exported, just this amount of the bill goes on my taxes and then if I get audited, I have a nice thing I can say, Look, I used my home Internet. I've got it split up between personal use and business use. Most importantly, I feel good about that. So going forward, that's how it is. Now I've got as I go down here and that this a random advertising expense. So one thing I've learned about advertising advertising covers a lot of different categories for my particular business. If you spend money on something that is used to produce an advertisement for your business , then that's advertising. So my wife and I went to the Gaylord Palm's. I bought a $20 card at the video game arcade. I used my 3 60 camera to film me playing deal or no deal, another arcade games. I upload those videos to YouTube, which are then part of my YouTube channel, which brings people in and makes by business sales. So the advertising, all that I put into making my videos then is able in my way of looking at it to be classified as an advertising expense, the same as if there's an advertisement on TV, Anything that goes into putting that into play is an advertisement. Now I don't have to actually pay to run all of my videos advertisements. I watched the data. I make a bunch of potential videos to uses an advertisement, the very best ones and the most profitable ones. I then advertise those, so I'm able. Then I chose to use my business card here so this $20 shows up in my advertising budget because that was the intended purpose of it. This is what I've gotten out of learning years of learning how to do my business and that the transactions I do individually force me to keep learning about each individual expense . So this Alexa Internet allows me to track my website using Alexa dot com. That's an advertising expense. Can va dot com allows me to make video thumbnails for YouTube, My website. Facebook advertising expense on iTunes. This is for the Apple iCloud drive, which bills through iTunes. This is something I used to transfer my videos among four different computers that's used then for advertising. Now here's one that I just was able to start doing out of laziness. When I did my taxes before, I just would put the whole I have home office water delivery with Nestle. Ready? Refresh a k was Zephyrhills before. So what I've got I've got my home water delivery split between personal business because if I had a physical office somewhere, you'd think it made complete sense. Toe have water cooler there. Well, I just happen to have a home office, so my water coolers in the middle of the kitchen. Therefore, I've got this rule set up that it puts it half of it on business expenses, and then it puts half of it on my personal expenses. So that way that whatever the bill is, it's split half and half again. The same thing. Peace of mind. Honestly, half the water gets used by my wife and daughter or me when I'm not working in the other half his side and drink, drink after drink after drink, of tea and other water. Because, you see, I talk a lot. So then I have all this water to keep things lubricated during this talking process. Then as you go down in here and makes things so much easier, For example, Google AdWords, I've got a rule every time Google AdWords bills. I know it's advertising. So every time AdWords bills its advertising rev dot com getting transcriptions for my videos done, it goes into advertising. And then same thing with my cell phone bill. As before, I have six cellphones. Um, I've Rise and Wireless plan and I split that half and half because one of the cell phones is mine, and one of them is for my friend, and then we use that is our primary communication over the last five years of talking about our business together. And then I had another cell phone. My wife has a cell phone. I talked to my mom a lot about my business and my brother. Ah, lot about my business. Now I don't write the whole thing off, but a significant if not about half of the time I spend on my cell phone and the cell phones on my plan are used for business. So I split that up also half business, half personal, easier than getting a separate account to use just for my business. And it's nice that this is so easy. Then and then all my payments that come in here they just get automatically catalog, which is nice when you've got your bank account sync up with your credit card. You'll see when I make a credit card payment. QuickBooks, self employed, realizes that I'm taking this money out of one account and applying it to another credit card account. So then it automatically categorizes this as a transfer, which is really nice because then it knows this isn't any riel money in her out of the business. This is just moving money around in the business. So that's different. For example of say, this is a cash payment. Your contractor, this is income. Come in. You'll notice then these payments automatically to credit card payments. So then, same thing on my Disney passes I just bought. I told my wife by those with the business credit card, because I'm going to use my little 3 60 camera down here. I don't see where it is Over here. I've got my little stick for it and I've got my my container for I'm going to go to Disney and to make some 3 60 videos that will be used then to make videos on my YouTube channel. Because some of the 3 60 videos I've done have done the best, and I want to test out Ah, lot more videos where I'm going out somewhere. That's interesting. No one cares. Find going for a walk in my neighborhood when I go to Disney and do some 3 60 videos. It's interesting there, but honestly, every single visit to Disney is not going to be a business trip. So about half of the trips there will be set up in a way that I can go film my 3 60 videos while I'm there, and then the others will just be for fun or one trip might include both. So this has encouraged me to get to know what I can write off and how I can set that up a lot better. Since this is going into creating videos on my YouTube channel, it could be advertising. Now you could look at how I'm doing my taxes and argue with that. You could say that's not every time that that doesn't matter what you think of my taxes. What matters is are you able to set your taxes up and are you able to set your business up so that you feel good about it? I feel good about what I'm showing you. I feel good about my life is set up to maximize what I do as it's involved with my business . When you look at what you're spending on your business, and when you look at where you're spending in your personal life, it provides motivation to set that up so you can see my fee for QuickBooks. I'm paying 11 99 a month for this, and it's extremely helpful. And then QuickBooks says, it's a business license, So I trust QuickBooks on its own definition of itself. And then the nice thing. This allows me to make my income reports down here every month. I can show exactly what I'm doing in my business because everything that is transparent, I can show exactly how much money I'm making from exactly which source, because everything is deposited straight in my account. And then there's a nice feature that QuickBooks has. It's called the owners withdrawal, so this essentially turns into cash for the business. So I deposit $1000 on coin based, which I can then buy Bitcoin with, and then I can use that as a form of a cash payment to pay contractors, and then that's just transferred out. The problem is, I have to manually enter those transactions in right now, so I keep those to a minimum. But on the positive side, Aiken, by Bitcoin and use that as an investment. And then when I cash it back to US dollars, then I have to pay taxes on it. But until then, it's just like having cash in the bank. And then what I do. I send my wife money each month out of the business. So then this just goes in as a transfer. Owners withdrawal because when you have your own business in your own business, bank accounts, that's how you make money. You withdraw money out of them. So it's easy to set things like that up so you can see the value off. And then I got a P O box right here. So I call that office expense because I need that. I could probably switch that toe advertising because I need that up there on Go Daddy for my website. But I'm happy with office expense on that, and again, it doesn't really matter if it's a write off. That's fine. It doesn't matter that much. One category you put it in again. I'm not a CP, though. If you're unhappy with what I've shared, please check with your own C p A. Please do your own research. If you find what I say, not satisfactory. Get motivated, figure out your own way of doing things. Here's one I like YouTube red. YouTube red is an office expense I use because YouTube red saves me a bunch of time and energy on YouTube watching ads. It's an office expense that allows my business to be significantly more productive, very thankful for that. And then I can see my account maintenance fees in here. I bought Skins to make videos with on League of Legends here that then I used to make videos on my YouTube channel. So I've learned advertising expense for that. And then here's a payment to a contractor over here. What you've seen now and then I got credits back from Facebook, so these going automatically is advertising, but they come in and reduce my advertising expense because then I've got refunds from Facebook. So you see, I've got a months worth of expenses here all clearly. Catalog the majority of these done automatically. Almost all of these done automatically Think out of all these expenses here I manually had to go in and make changes. Maybe for about 10 minutes. I had to spend about 10 minutes going in and manually entering everything in in terms of what you saw me do here, where I go in and put this as a business expense here. Most arrests of these, if you see rule by it, it came in automatically. So the majority of these with the green rule tab came in automatically. So this is why I am so grateful for QuickBooks self employed. It helps me do some amazing tracking in real time of all my income and expenses. And that's allowed me to do a lot better with maximizing my business income. 6. Use profit and loss reports to track income and expenses daily: one of my favorite parts of QuickBooks self employed is the ability to pull up reports. So what I can do? I can go look at my profit and loss for the entire year very quickly because I've got this all categorized here. So what I do, there's a tab over here. I click and I go to reports. And then I view this profit and loss reports, and this allows me then to see my entire year. How my business is doing and seeing how my business is doing over the course of the year allows me to understand where my expenses and income are coming from, especially the expenses. So what you see is out of the 489,000. This year, I'll zoom in a little bit more. Advertising and contract labor account for the majority of my expenses, and they also account for how the majority of my income comes in. So I spend this money on contract labor and advertising, and those, then are a huge part of how that money the income comes in. So these expenses almost directly contribute to this one, and then there's lots of smaller expenses down here. Office expenses, utilities travel a trip this year to visit my business partner, Joe. And you can see then a good idea of my entire business. And the beauty of this is instead of spending hours at the end of the year trying to go back and remember everything that happened last year, all I have to do is export this directly from here. And this plugs straight into TurboTax. All these correspond directly. And not only that, but I have extremely thorough recordkeeping done. If I get audited, I can just dump my QuickBooks self employed account. And if I need any additional information, I pay for the audit defense every year, which then I don't even have to deal with the I. R. S. If I get audited, I just send the audit defense company everything they ask for. And if the i r. S isn't happy with anything, I know I've reported all my income. Honestly, I know I've made an honest effort to get everything I've spent money on related to my business put in here. And then if they're not happy with anything, potentially, I could have paid over on the tax or potentially there could be a small penalty for under payment. So I have great peace of mind. I don't have to fear an audit because I see that I'm doing my best in my business each day . And that to me is one of the greatest things about QuickBooks self employed. And as I looked at each category, think why I've spent $6000 on office expenses. I'm motivated toe look more into each thing I've spent money on and learn more about that specific category in detail. Can you spend this on office expenses? And I have specific things to Google, and the terms are pretty vague. For most things. However, I learned you can't spend money on a gym membership, no matter of your celebrity, unless you're ordered by your doctor. So I've learned that no gym membership accounts you can't do that as a part of your business. All the things I didn't think I could put in as part of my business until I learned more about the advertising category, for example, I didn't think I could put money spent on video games. I didn't think I could put money spent on things like Disney passes till I looked and learned about advertising. If you use things to make advertisements that you can write, the things you use off Oh, that's good to know. Then, if I buy a video camera to do advertisements with, I can throw that in the advertising category instead of as long as it's not over $2500 then I can throw it in that instead of in one of the other categories. So this has been extremely out full for me. And then I'm able to see how much money my business is making for the entire year and what I can do. I can go over here and select last month, for example, and then I can see specifically for last month because my expenses have been much different . You'll notice last month a profit of 5400 hardly in line with the 250 or whatever 1000 for the whole year. So my expenses and my income have been drastically reduced After I got banned from teaching on you to me and started teaching than each day on skill share. So what I've done, you'll see I've adjusted my expenses. I've caught lots of little expenses in other areas. And then I've got a nice report. I can see last month that I made a $5000 profit, and that gives me a good indication of how my business is doing recently. And then I can look at trends I can say, Well, how's my business been the last three months? So then I can see over the last three months on that income of $10,000 over the last three months, which is pretty slim then, since with all my debt payments and things like that, that even though it's a profit on my business, it's a lost overall when you consider all of my different expenses. So all the things I've done online the last three months have netted a $10,000 profit, so that's good for me to know. I can look at and see. OK, well, where am I spending? And this actually pulled the wrong months for some reason that I can, you can then do a custom Day to make sure you get it in. So it pulled November for some reason, so what I can do on this is go July August and September, for example, so that I can look at these three months and then I can see okay, is a $30,000 profit in those three months. I can go up here again and I could move it up a bit. I could just switch this toe eight. I could move that up one month August 1st and then move that up one month to October 31st and it apply. So there. Now that's 16,000 the last three months. That's accurate. Instead of including November, that's, Ah, healthy income about 5000 month for my business before taxes. So this is an extremely helpful function. When you know exactly how much money you're making spending. It's much easier toe focus on making more money and cut some of the unnecessary areas. You'll see a lot of these areas I've cut, and I hardly have any expenses at all in them. As I've become aware off the expenses by category and the more I look at each thing, I spend money on the less like lamb toe want to spend money on something that I'm not using anymore. So these reports have been one of the most helpful things that I've learned to do in my business. I check these reports a few times a month to keep an eye on how I'm spending my money. For example, you'll see I've spent 9000 on advertising this in the last three months. But if you look at this entire year, I've spent 90,000. So even though this year's had 10 months in the last three months, I've only spent 10% of what I've spent on ads. In the other seven months, I spent 90% of my ad budget. So when I see my income go down, I just my advertising accordingly. Same thing with contract labor. You'll notice huge expenses and contract labor for the year. But if you look last month 8000 for contract labor, so my largest single expense. So these reports fantastically helpful. I'm really grateful for their use in my life, and I'm grateful to have the time to share with you about how they might be useful for you . 7. Tax reports show US schedule C expenses all year: another report. That's really helpful if you go over to the side bar and go down the reports right under the profit and loss is a tax summary. So if you go view the tax summary, then I've got the entire year of taxes explained and shown, as I can expect to pay my taxes. So then it shows me exactly the expenses I have on Schedule C. And this is only relevant if you're in the US, your taxes may be completely different. Another country. These are the common expenses it shows May and then I've got how much I can deduct so advertising contract labor. I can deduct all of it. Now you'll notice in meals and entertainment. I've spent $400.81 dollars on meals and entertainment, but I only deduct 240 of it because of the IRS rules. So it goes through and gives me all of my expenses and then how much I can deduct and then below that it has more information than I can put in here. Now, I have not put in my mileage for my vehicle yet, so I'm doing my vehicle just based on a dominator because I have signs on my vehicle and use it to test out and do advertising. I haven't driven my vehicle much this year, so it's not going to be huge deduction. But I'll put that in its better toe. Overestimate the taxes a little bit because the IRS is not going to penalize me for paying too much. If I pay too much, they'll be happy to give me the difference back. So this is nice because I haven't put my home office deduction in yet. I don't think I have any business assets that are worth more than $2500 that air physical pieces of property because I've got a and the most expensive thing I have in here is this. I'm AC or not the I Mac, the Mac pro, and I'm renting that. So it's not mine. It's written off his rent and lease. Then I've got other deductions and I haven't switched my health insurance up so that I'm paying it yet. But starting next year, the health care expenses should be included up there in front. Then it shows my estimated tax payments. Now this is all the IRS told me to pay. Last year it said to send a 36 $100.74 payment four times and I've sent the 1st 2 I've sent exactly what was asked, and then I sent a little bit more the last time. So with the I. R s tax requirements, then the nice thing is this Quikbook, self employed, tells me the exact amount I need to pay in the difference. So I go over here and it tells me it thinks I need to pay $66,000 in tax of only paid 11,000. So what I'll do is then I pay the additional 55,000 before the end of the year to make sure I've paid enough. And then when I go in and put the rest of my deductions in, then I'll be able to get a refund off of that. So the Ire s will be happy. I'll have a nice, big fat tax bill and then they'll give me back whatever I overpaid. And then I can use some of my other cash from the business profit to put some money into retirement because I've got 50. My whole family, we've got about 15 or 20,000 and retirement, and we've got a little girl who's a year old. We have Noah where my wife has some savings to. So the taxes will be really good to put in some additional money and for retirement, which will reduce the amount of tax. However, what I want to do is just pay the full amount that QuickBooks estimates and then get a refund instead of under paying and facing a penalty from the I rest now, I think last year, the year before, I underpaid just a little bit because my wife made more income and combined with my income , we I think my penalty was three or $6 but I only underpaid by a few $100. So this year, if I didn't pay any of this before that deadline, which is January 7th, then the I. R. S would give me a huge penalty, probably thousands of dollars. So I send the money in by the end of the year, and then the I. R s looks for the entire year. They don't care as much. Rather, you pay at specific times of the year. They want you when you go to put your taxes to have paid for the entire year the amount of tax you needed to pay. This has been a weird year for me with having made so much money at the beginning of the year and just started using QuickBooks. Next year, I will send payments along the lines that QuickBooks recommends. So I recommend to send the recommended payments in line with what it says instead of having a whole bunch of money left at the end of the year. Unless you're not sure about your business. But at this point of the year, it looks like I should be making about the same profit the last two months. So now I'm in a good position to start sending those payments in. So I'm going to be doing that shortly. This is the beauty of these reports in QuickBooks self employed. You can see so far ahead, and you can even change your projection so I can go in here and I can you see. I've got a projected profit of 10,000 for the last quarter here. So then it makes my payments based on that, so you'll see I didn't plan on having these huge profits these first couple months. So I got all out of whack with that. So its nice because with you can actually send the payments in directly through QuickBooks . Although what I have to do is send them in straight through the Ire s website and then it's recorded in QuickBooks after that. So I'll be making some big tax payments here within the next few days to get all these taxes in now that I've got a good picture of my business here. So I appreciate QuickBooks is insights on this, and I'm glad this year I've used this for the entire year for the first time. It has taken me months to just get comfortable enough in it to show these things to you months to realize it would have been better to keep up with my tax payments that it recommended from the beginning instead of holding on all of them at the end of the year. And it's nice to see all of this data here in a way that's easy for me to use. And next year, then it should be even less work than this year. So thank you very much for watching this. I hope this is a helpful look for you inside of QuickBooks. Cell phone 8. Using QuickBooks SE to assist with filing taxes: welcome to looking at how to do your taxes and some tack tips. I hope for our really helpful for you when it comes tax time. Because while the purpose is to keep up with their finances all year in your business, you really are excited to use this when it comes down to actually doing your taxes. So in the US, the taxes can get very complicated, I would guess. In other countries there similar issues and the bigger your business gets the mawr individual little payments you get, For example, these are all my Amazon royalties now, these then have produced a challenge for me because now I've got these affiliate payments. I've got royalty payments. I've got create space. I've got Amazon video on demand. I've got it all together. So my tip in here is to focus on doing the best you can to get the numbers toe all add up and do what you need to to just try and make it functional so that if you get audited, the income matches the income you put in. It may not be always perfectly neat wherever you put it. For example, I got a 10 99 form, which is what Amazon uses to report income to me to the federal government and what I used to report income I pay to other contractors as well. So the Amazon sent me a 10 99 form here for $457.68. Well, that doesn't match up any of the exact ways I confined tow line up all these transactions for all these different things between the among the affiliate program among the video on demand and create space. And Kendall, I just do not see exactly how everything adds up here in one simple format. So what I've been doing is just doing my best. You see, I got and I just essentially subtracted everything that they accounted for. So they accounted for exactly how much money I made from in this 10 99 form. So according to my records, I have this much. So I just subtract each individual part I have out, and if they send me another form, it may tie everything together. So what I do is I try and do my best to just continue one transaction at a time to just get everything entered in as best I can and get the numbers to match up in my taxes. And I accept. Sometimes it might not look absolutely perfect. Like, ideally, I'd like one entry with all Amazon. But instead I just tracked the things I've got. I got the affiliate, I got just Amazon total. I got creates base and then I have a 10 d 9 99 for Mom or Amazon. So I technically have Amazon income in four different spots. Then you'll see here like I've got PayPal sales in here, and then I've got PayPal kind of extra left over in here. I feel the most important thing to do is make sure you get the income reported. Now you can have an accountant help with these things. I don't currently have an accountant help because it's easy enough for me to translate using these QuickBooks over here and putting it all into the taxes and having an accountant , I would likely need to do about as much work to give them everything and to explain everything to them as I would to just put everything in myself. However, I'm open to working with an accountant in the future as my business taxes continue to have more and more off all these little line item entries that, when you have them by default in QuickBooks, don't exactly make perfect sense. What is that? Amazon? A CH crowd? There's amazon dot com misters Amazon Dej, Miss Their sont creates based, dimmest so many different ones. So I accept that. I just make sure I get the income reported correctly. That's my responsibility in the exact description. Well, as long as the numbers add up the descriptions not as important. If I get audited, I just fork over all the paperwork I have. The income matches up exactly where it went, not as big of a deal. 9. I work a little bit at a time on my taxes for months: Here's a tax tip that hope is really helpful for you in getting your taxes done steadily. Over time, you can see inside my taxes here. What I've got on my report doesn't match. So if I go over here on QuickBooks and I go toe last year, what I've got on my report doesn't match what's in here now I made to businesses, which is a total makes things more complicated. I don't recommend that. And now it. Anyway, So what I end up doing is trying to get all of my expenses in QuickBooks Teoh equal all of my expenses in TurboTax. So I tried to import them into QuickBooks. I guess it didn't work because I'm married, filing jointly along with two different businesses. So what I have to do, I manually go in and edit everything. Well, the point of what I do. I try and just do it steadily. Over times, you'll see some of the things add up. Like if you look the travel expenses down here, the travel expenses adds up and is the same as it is up here by now, when this doesn't add up because in my other business, I spent some money on advertising as well, and then same thing like with the utilities down here. And the what I try and do is get all the expenses between both businesses tow line up and match QuickBooks, and that the strategy I'm doing them is to keep just working a little bit over time. See, I've got about half of the contract labor in, which is why it says I still owe 30,000 in tax When I put another 80,000 or so in contract labor expenses in there, that will take the tax down a whole lot. So what I want to do is I I just keep working a little bit every day on it. You see, there's a lot if I click on the contract labor payments, there's a lot of transactions to go enter in under the contract payments. So I've already got some of them in. So what I've done today, I put the contract labor I already had in today. I added some new income forms them, but it's February 8 2000 and 17. I likely need to wait until nearly Marge before all I can figure that all the companies have sent me all of the forms they need to send me because I'd rather wait to file my taxes later and make sure I've got as many forms I can get my hands on now. Way if I get a form from a company after the fact, if if someone sends me on income report in March, hopefully I should have been able to report that and cover that in my transactions because sometimes companies contractors will send you information that doesn't match what you have in your records. So what I do, I just try and steadily work on my taxes. I do whatever I can that day. I put whatever income my in and then I know next time I go in, I need to goto work on the contract labor and go through here and square off every single contractor in QuickBooks and get this number on here to add up to 164,000 here instead of 78,000. Meanwhile, though, I've done a lot of the lower the smaller categories. I've done the easier ones, and I've done the advertising one's already, so I just keep working a little bit over time on all these different transactions here and then with the goal to give my total business income and my total business expenses to get the net income from all my businesses tow line up exactly in TurboTax because I want I want to will be reporting the same income and the same expenses to the ire s that I have in my records. The main thing the according riding see that is important for your taxes is that you report your income and expenses accurately. Now the accounting is a little sloppy or not perfect. Well, that's probably going to be the case for lots of businesses. So I try and get Everything is accurate is possible. But I'm a perfectionist. I want every single thing, the lineup to every single receipt and have everything smooth. But the reality is business isn't that smooth. Lots of times company will say they paid you something, but then you'll actually receive it the next year, so that can mess things up for all the numbers. And I like I'm working on my perfectionism. So that's why I encourage get everything, get all the numbers, tow line up, enter them a little bit of time. Do your best. And don't just give up having the necessity to do it perfect. An audit is no big deal if you've accurately reported your income and your expenses. If you've committed some kind of fraud and you've hidden income or you've done things to cheat the expenses, then an audit, the problem. But if you've honestly went and reported everything that a very best of your ability, then if it is, then that is good enough. So I'm grateful today I approach my taxes with I do the income and expenses accurately as possible. And then I do my best to get everything entered in properly over here because the reality is it often doesn't match up just perfectly. So thank you for experiencing this with me. And I hope this is helpful for you as you go forward and prepare your taxes. Using what you've learned in this class, 10. Paying my estimated taxes during the year: for paying taxes in the US at least you have estimated tax payments. It may be probably is done differently in other countries. What I look at is I try and pay a little bit extra because especially married, filing jointly. Any money my wife makes is likely at least a Muchas my business made last year to not be taxed high enough. So I paid in nearly $4000 over what it QuickBooks self employed, recommended. I paid that much over because I want to. I would prefer to have paid a little bit extra and get a refund than to find out I didn't pay enough ano another 5000. Right now, I haven't got everything entered in ensure the idea of going 30,000 in taxes. Pretty scary. However, once I go enter in the other $85,000 or so in expenses that I paid to contractors, that should likely move the tax down pretty close to zero, and then I go into the rest of the things I have in. It should move things to a refund. However, my wife made some money than that incurred an extra about $3000 in taxes on the money she made. So I'm glad I overpaid a bit because I don't wanna have toe. Oh, any penalties And I'd rather not have an additional tax bill, plus my new tax estimated payments for this year. So I'm grateful to have this information to share with you. One of the biggest mistakes I made last year was to just hold my tax money instead of actually sending the payments. What holding the money? There could be the temptation suspended too invested to play around with it. And this year I'm sending the quarterly payments in whatever it recommends. I'm going to send those in and you'll see it adjust the payments. For example, I got a lot of payments, and at the beginning of the year, I got much smaller ones in the next couple of months. So it adjusted the recommended payments down, and then it adjusted them up based on the additional income going forward there. So I recommend, and I'm following it. This year, it recommends I pay 14.5 $1000 by April 18th so excuse me, it's halfway through February. I've got about $7000 set aside for taxes and I'll make the payment that way. What I actually did last year, I made a little payment in in January and little payments. But then I made, like, a 60 or 50 some $1000 payment at the end of the year. And the problem is, when you hold on to extra money, you feel like you have money. As soon as I sent the I. R. S that 50 or 60,000 I didn't feel like I had any money anymore. So for me, I like to just when I o get that money paid out there and then keep up on my payments so that if something like, say, if I make less money and I expected, then I've my taxes will be smaller. I love overpaid a bit, so I don't I hope this is useful for you as you are doing things like making your estimated tax payments throughout the year when you are continuing to earn money with their business online 11. Microsoft Excel exports for entering many transactions in TurboTax: Here's another tip I hope will be really helpful for you doing your taxes. When I do, I use the export button. There's a little out link out but looking button in the upper right whenever you pull a report from a page. So if you look at, for example, before this, I clicked on show all of my contract labor. And then as I'm entering this in to QuickBooks or into Turbo Tax, then what I've got I've got all my expenses here by individual charges. So what I can do is just select all of them together and in the lower right. It gives me a some and that way I have all my expenses. I don't have to go look through each transaction and see a bunch of repeat transactions. But what I do is I highlight the whole column. Here I go up to sort a to Z, and that allows me for contractors, for example, like up work that have made a lot of individual charges. Aiken sort them all into one group, and then I highlight all of the charges at once, and then I just easily put in one line item entry, then as I scroll up and down in the spreadsheet, it's really easy to see all the payments to each individual freelancer. And then, as I see the payments, I just select him. And once I enter them in that I enter, I make the I make everything bold. I hit control. Be that way. No, I've entered that in. And that way, if I need to move up and down the spreadsheet, I just go to initially make sure I've got everyone grouped together correctly that some transactions are aren't appearing to a freelancer in different entries under different names. So I check all those in here. There's hundreds of lines on this sheet for my contractor payments, and then I just select all the payments, entered them together in Boulder. So that made doing the contract labor section off the most difficult part of my expenses. It made it very easy because in QuickBooks self employed, I'd each individual transaction I export to a Microsoft Excel spreadsheet. I sort and then I've got all my transactions easy and ready to enter in 12. Project for QBSE is to show what you did using this class: thank you very much for finishing this course. I'm honored. You've spent so much time with me, would you please use the class project to share what this course motivated you to do? I would love to see a screen shot off what you are motivated to do as of taking this class because I think that will help everyone learn along with you. Here is my class project. I felt pretty stupid teaching this class and then showing that I had a $54,000 estimated tax bill that I hadn't paid yet. So what I did as a motivation and inspiration from this class I just went through between the last two videos used the pay taxes button as shot, that big pink button up on the top of the screen that was up there before I used it. Now you'll see on the lower right hand corner. I just submitted a payment that was successfully received to what's called E f T P s, which is the US government's online. Pay your own taxes for business that way. I just submitted a $54,000.691 payment to cover all the estimated taxes that QuickBooks, self employed, thinks I could possibly Oh, the actual taxes. I hope when you combine that with the 66,000. Then told that I paid, I hope the total will be that I actually owe will be significantly less than I get a refund . I feel a lot better now. I took the money out of my savings account and send it to the IRS. I've done my part paying my taxes for the year now, and I'm grateful that this course has inspired me to do that because I just couldn't see teaching it very well and ending it on the note of Look how much money I owe the IRS. So there we go, sent my payment online. That's all done. And now QuickBooks will know it won't keep reminding me to pay my estimated taxes. I'm honored. You've spent this time with me. If you've enjoyed this course, would you help me out? By leaving a review, It will help everyone who's considering taking the class. It's very quick and easy to do. I leave a review on all the audio books I like, and then I quit early. If I don't like listening to a book or class. I'm not gonna watch all the way to the end. So that's what I do. I watched to the end and like someone's course, I leave a good review and explain what I learned on it. Thank you very much for being here with me. And I hope you have a great day today.