Tax check list for homebased sales (party) Businesses

Home-Based businesses selling products or goods need to keep specific records of their business activities. These businesses such as Mary Kay Cosmetics, Lia Sophia Jewlery, Pampered Chef, Reliv Nutritional Supplements, Silpada Jewlery, Longaberger Baskets, and so on. You need to track the sales (gross Sales) at each party, the purchases of the goods or products (Cost of Goods sold) that you are selling, sales tax that you collect and pay to the state and/or local taxing authorities, as well as your operating expenses including but not limited to:

Income:

q     Gross Sales

q     Additional commissions received

q     Sales Awards

Expenses

q     Cost of Goods Sold

o       Start of year inventory

o       Purchases, less items bought for personal use

o       Materials and supplies

o       End of year inventory

q     Advertising

q     Commissions and fees paid to others

q     Insurance

q     Legal and Professional Fees

q     Office expense

q     Rent of business location or equipment

q     Repairs to Business property or equipment

q     Supplies

q     Sales taxes collected

q     Travel

q     Meals and Entertainment

q     Gifts

q     Sales Aids

q     Training

q     Sales catalogues

q     Automobile mileage

§         Keep a log!