Record Keeping

DISCLAIMER This presentation is not tax advise Consult your tax advisor This presentation is not legal advice Consult your legal advisor This presentation is not financial management advise Consult your financial advisor

Why Keep Records Help get you where you need to go when you need to be there Helps avoid conflicts (spouses & others) Easier to complete taxes Stay out of jail Stay out of trouble MEMORIES FAIL

What Records to Keep Assignments Schedules Income Expenses

How to Keep Records Electronic Paper Computer iPad Other electronic device Paper Who has home computer? Who doesn’t?

Electronic Record Keeping Computers are your friend Excel spreadsheet Organize spreadsheet to provide you everything you need on daily basis and at end of year Who can use Excel? Who can’t?

Sample Spreadsheet Maintain on monthly basis Items to record Assignments Schedules Income Expenses

Assignments Use Arbiter or other schedules you’re given Day -- Date Time -- Location Type assignment -- Partner Role Pay Amount When paid How paid

Schedules Clinics Meetings Other events requiring your time

Income Match fees Travel fees Per diem and other income Important to have a method to record how much you were paid; if you have been paid, when you were paid; how you were paid.

Expenses You may deduct all expenses that are reasonable and necessary to produce income from your job (avocation) Relate expenses to IRS yearly reporting

Car Expenses Record actual expenses OR Take standard deduction Parking fees & tolls Use for overnight trips rather than daily trips

Commissions & Fees Commissions you pay an assigner or organization. Dues Memberships in professional organizations Camps & clinics Computer programs you pay to use (must be related to avocation)

Insurance Not health insurance (usually) Generally liability insurance or other business insurance

Legal and Professional Services Bookkeeper or accountant Legal services Financial advisor Tax advisor Ordinary and necessary expenses directly related to operating your business (avocation).

Office Expenses Postage Other things related to maintaining an office or records related to your avocation Copies and binding Notebooks

Pension and Profit Sharing Plans SIMPLE IRAs May be able to claim here or may have to claim on 1040 Could be one participant retirement plan (seek tax advise)

Repairs & Maintenance Incidental repairs and maintenance Dry cleaning Tailoring

Supplies Incidental material & supplies for which you kept no inventory or record of use Equipment (whistles, cards right height, etc.) Uniform items Shirts Slacks (if used only in avocation) Shoes Belt

Travel & Lodging Lodging and transportation expenses connected with overnight travel for business Airline, bus, or rail tickets Hotels Shuttle service Hotel or airport parking

Meals & Entertainment Reasonable and necessary (many prohibitions) Can deduct actual cost (receipts necessary) or use standard deduction (IRS Pub 1542)

Utilities Can deduct if directly related to producing income in avocation Cell phone Extra phone line Internet service NOTE: Generally cannot deduct basic service or primary phone line

Mileage Deduction Commuting Miles (not deductible) Travel between home and work Personal Use (not deductible) Self-explanatory Business Miles Travel necessary for business

An Example You have an assignment at Any HS and will travel there directly from your job. The total miles you drive that day is 78. It is 28 miles from your home to your job. You may deduct 22 miles for business travel. You have 56 commute miles. If you go home before going to your assignment, your mileage from your home to your assignment is normally not deductible.

Aids for Mileage Records Mileage log from standard templates

Mileage Log Template

Aids for Mileage Records Mileage log from standard templates Mileage log from office supply store

Mileage Log Office Supply Store

Sample Spreadsheet EVERYTHING KEYED TO IRS REPORTING Monthly record Yearly summary of mileage and income Expenses EVERYTHING KEYED TO IRS REPORTING

Summary Keep good records Use records as an aid Income tax Notify partners Keep you on time Can use to answer who, what, when, where, why, & how Share records with those who need to know to keep you out of trouble

Questions ???