One of the best things about being a direct seller is working for yourself! You have the freedom to work as much as you want and work the hours that fit into your busy lifestyle. The financial aspect of direct sales is a necessary part of owning your own business. Tracking expenses for your direct sales business will come helpful during tax time. Not sure where to start? Read on for more expense tracking tips.
As a direct seller, you may wonder what exactly constitutes as an expense. Before listing some of the most common expenses for your direct sales business, I want to preface this with the information that I am not a tax professional and a great financial tip is to discuss your expenses with your tax professional when dealing with your direct sales business.
Now onto the most common expenses, you will come across while working your direct sales business:
- Vendor Event Fees
- Licensing / Insurance Fees
- Direct Sales Training / Coaching Fees
- Postage & Shipping Fees
- Business Cards & Promotional Items
- Supplies such as bags, order forms, notecards
- Advertising Expenses
- Dedicated Workspace (I’m looking at you, my LuLaRoe lovelies!)
These are expenses you want to keep a detailed record of and hang on to any copies of receipts that stem from these common direct sales expenses. A great way to manage your direct sales expenses is to record them in a spreadsheet. I find a Google Drive Spreadsheet does the trick! It’s accessible from anywhere and when it’s time to provide documentation, just simply click print! You can even color code the expenses based on categories like mileage, vendor events, postage, etc. Setting up a simple way to record your direct sales expenses results in having an organized view of your business!
Having a clear understanding of why you need to start tracking your direct sales business expenses is important. It’s also best to know some of the key tax tips for direct sellers as well. Head on over to read about the top tax tips for direct sellers and let’s work on getting your direct sales business financially organized!