Anyone in the direct sales industry knows it’s important to keep detailed records of all of your sales and expenses involved with your direct sales business. I’ve shown you how to track your direct sales business expenses and come tax time, it is important to know these 5 tax tips for direct sellers!
First, I want to share that I am not a tax professional and encourage you to seek out professional tax help when it comes to doing your direct sales business taxes. In fact, that is the number one tip on my list!
- Find a reputable tax professional who is skilled in preparing taxes for direct sellers. It is crucial to find someone who is knowledgeable about the direct sales industry. They will be able to help with deductions and expenses where it is applicable.
- Keep a record of your direct sales business expenses. Having an organized spreadsheet of your expenses throughout the year will help your tax professional compile all the necessary tax information.
- Keep receipts! It’s very important to have a physical record of receipts to piggyback on the spreadsheet you keep for your direct sales business expenses. Over-document so you do not have a problem come tax time!
- If claiming part of your house as a deduction (think LuLaRoe consultants who have a dedicated space just for their business) be sure to document this properly and always follow your tax professionals guidance here!
- You can write off your tax preparation expenses. So take note, follow tip #1 and have a professional prepare your taxes!
I know when tax time comes around you will be fully prepared and ready to submit your taxes for your direct sales business. It’s a necessary part of the business and by keeping records, being informed and being organized, your tax preparation will be as smooth as possible!
I’d love to hear what roadblocks you have encountered while dealing with your direct sales business taxes. Comment below or send me a message! If you need some help with your direct sales business expenses, don’t forget to click here!
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[…] 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 […]