Profit and Loss Statements

[spagirl1550]

Is it best to do these monthly, quarterly, or annually? What other statements should I be filling out or keeping record of? What matters most?

[evelynm]

Profit and Loss statements track income and expenses which likely matter most.   There are other areas to consider such as business assets subject to depreciation and business mileage.   QuickBooks Self-Employed from Intuit offers financial reports and templates to help self-employed individuals track their income, expenses, mileage, and tax information accordingly.   You can run the reports at any time in real time.    Keeping good records and reconciling bank/credit accounts is very important - Quickbooks Self Employed 

Additional information about reporting income and deductions:   Reporting Self-Employment 

If you keep up with your bookkeeping it will make things much easier when it come to tax time.   Depending on the complexity of your business you typically would want monthly financial statements.

The links provided assume you are self employed.

[icalvo]

Hi Spagirl1550,

Thank you for joining our event and your question. 

I find it best to update your books on a monthly basis, specifically if you have a high volume of business transactions to report.  Not only does this help you keep track of money coming in and out of your bank, it helps you to stay organized and focus on your business growth.    You should keep track and include other business expenses that may have been charged on a credit card. 

Having up to date and accurate bookkeeping is of importance for a timely filing of your tax return and correct estimation of your quarterly taxes, if applicable. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"