1. Record Keeping

2. 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

3. 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

4. What Records to Keep
Assignments
Schedules
Income
Expenses

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

6. 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?

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

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

9. Schedules
Clinics
Meetings
Other events requiring your time

10. 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.

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

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

13. 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)

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

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

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

17. 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)

18. Repairs & Maintenance Incidental repairs and maintenance Dry cleaning
Tailoring

19. 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

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

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

22. 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

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

24. 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.

25. Aids for Mileage Records
Mileage log from standard templates

26. Mileage Log Template

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

28. Mileage Log Office Supply Store

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

37. 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

38. Questions ???