Hi everyone, my husband started his business 8 months ago as a general contractor/handyman in Washington state. He’s the only one working in his business right now. He’s been filing taxes quarterly, but now he needs help finishing his end-of-year tax stuff. He’s struggling with QuickBooks, especially when it comes to separating COGS from actual income. He made $13,000 in income, but with all the business expenses, it looks like his earnings are $25,000. Any advice from those of you who deal with taxes in your small business would be great!
If he’s been keeping books all year, all the details should be in QuickBooks.
If he bought inventory that he held over to the new year, it could explain the $25,000. For example, if he has $13,000 in cash taken out, and $12,000 in inventory left at the end of the year, the profit might look like $25,000.
I’m a QuickBooks proadvisor. Even though your post is a bit older, I can still help your husband keep his account up-to-date and file taxes quarterly or annually. Check out www.t2booksandtax.com if you’re interested!