MLM Tax TipsAre you looking for MLM tax tips? Did you know that network marketers have many of the same tax advantages of traditional business owners? When you have your own network marketing business, you can deduct your expenses, which offsets your taxable income. Although I am not a licensed accountant or bookkeeper, I’ve done my own taxes for years. This includes taxes for my network marketing business. And I want to share my four favorite MLM tax tips with you. These tips will simplify your day to day accounting efforts and will make life much easier at tax time. Best of all, you will be organized and will be able to monitor your business’ cash flow on a monthly basis. Let’s get started: 1. Educate Yourself: If you have never owned a business before, you need to educate yourself about small business tax. The best way to do this is to order a few books on small business accounting. Although you don’t need to be a guru, you need to have a basic understanding about what you can deduct and what you should track. 2. Keep Every Receipt: When I first started my own business, I had a hard time keeping every receipt. I just wasn’t used to saving receipts. Within a short few months I formed new habits. Once you know what expenses you can legally deduct, you will know what receipts to keep. 3. Develop a Filing System: You need your own filing system. It doesn’t have to be complex either. It just has to work. Personally, I use a shoebox. I throw all my receipts into a shoebox each month. On the first day on the following month, I sort the receipts by category and stick them in envelopes. Other network marketers prefer programs such as QuickBooks. Or, you can use a filing cabinet. 4. Create a Monthly Profit and Loss Statement: You MUST keep a monthly profit and loss statement. This allows you to keep a pulse on your business and monitor your monthly cash flow. Don’t make the common mistake of not knowing where your business stands until you do your taxes. Minimum once each month, you need to input your numbers into your accounting software and print out a profit and loss statement. I keep it simple and use a Microsoft Excel Sheet. In conclusion, these are my four favorite MLM tax tips. I’ve found that the most successful network marketers realize the importance of knowing their numbers. They always keep a finger on the pulse and know where their business stands each month. They do this by educating themselves, getting organized, keeping their receipts, developing a filing system and maintaining a monthly profit and loss statement. If you are serious about your business, you should follow these recommended MLM tax tips.
New! CommentsHave your say about what you just read! Leave me a comment in the box below. Copyright 2010-12 MLM Resource Center / All Rights Reserved. All trademarks and copyrights are held by their respective owners FTC Disclaimer: I do earn commissions from some of the products I recommend This site is for informational purposes only and should not be considered as business, legal or financial advice |
