These forms will help you organize your expenses.

Also, below I've printed the How-to's for keeping receipts and doing your taxes.

The Mileage Log....

You can use this on a clipboard or in a binder and keep in your car.

Or, get a small spiral notebook, set it up like the log

And keep it in your car.

Keep all your gas and oil receipts and any repairs receipts for your car.

Also, keep your mileage to see what is the bigger deduction.

 I believe the deduction is 42.5 per mile this year!

I always use mileage because it's bigger and I include my MK business everywhere I go.  I'm always seeing someone to hand a card out to during my errands, stopping at the post office or delivering products or holding an appointment during my errands. 

For more information, go to www.accountingunlimited.com  to print off the tax form for Mary Kay Consultants. I strongly encourage you to use an accountant who is familiar with small business taxes, especially Mary Kay taxes....

Tell  Guess what time it is?   Here it is, the end of 2005, and there are a few things we all need to be doing as smart businesswomen: 

1.          Take your year-end inventory. Simply take a current order form and tally up all of your products. Its not necessary to count the number of Spun Silks, for example, but your total number of eye shadows, lipsticks, cleansers, etc.  Put it all on the computer, as if you were putting in an order, it will total everything up and save you time!

 If it is not on the order form it is discontinued product and that figure needs to be separate. 

         This figure at wholesale is needed for your taxes. Whatever sales you make prior to your inventory count should be dated up to Dec 2005, any sales made after inventory count should be dated January 2006.  So it doesn't matter what day you do it as long as you do it soon! 

           Take your automobiles odometer reading as of December 31^st. You need this number to determine the number of miles driven in 2005. Hopefully, youve kept track of the Mary Kay miles youve driven in 2005, and your accountant can easily calculate the percentage of business use for your car. If you HAVENT kept track all year, keep track of your total miles and business miles for one month. Were creatures of habit, and your accountant can calculate with a fair degree of accuracy based on one months mileage. 

3.                 Make sure your business receipts are organized. I recommend an accordion file, labeled with the different expense categories listed below...(advertising, postage, inventory packing slips, etc.).

         4.       Be sure and keep track of retail uses for PERSONAL USES, GIFTS and DEMO ITEMS of Section I.  Turn that into your tax person.

5.        Service your customers this week! Simply calling and thanking them for their support of your business this year creates good will and continued loyalty.  You could have a I dont want to count it sale this week, giving your customers a discount this week only. Another idea is a New Years Day Phon-a-thon, where your customers call at different times of the day for different discounts. For example, calling between 8am and 8:59am = 30% off; 9am-9:59am = 25% off, 10am-10:59am = 20% off, 11am-11:59am = 15% off, and 12 noon to 12 midnight = 10% off. You could also do something with your website or through email.

6.            Book appointments for the New Year!   January are huge class months!! People's skin is so dry now it hurts....they are ready to get out of their homes and do something with their girlfriends. It was also always my biggest personal recruiting month...people are ready to make a change!!!

  O.K. As you finalize your IRS Income tax year.... use these simple tips, please share these with your sister consultants who do not have e-mail........you can print it off (60 pages) on the InTouch site, Learn MK.  My suggestion is to read what you can handle, but to take one to the person who does your taxes. This booklet is AWESOME!

Attached is a schedule of items you can deduct, and the more work and totaling you do, the less it will cost you when you take it to a tax person.  Hope this helps, call if you have questions:

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INCOME TAX PREPARATION FOR YOUR MARY KAY BUSINESS

 1.       INVENTORY OF ALL SECTION 1 WHOLESALE MERCHANDISE ON YOUR SHELF AS OF DEC. 31.    $__________

Use your Consultant Order Sheet to record totals, add up the retail amount, then figure the discount at 50% which you ordered during  the year to give you the wholesale amount.

2.       Go-Kit COST IF YOU ARE A NEW CONSULTANT DURING THE YEAR   $__________

3.       ALL RETAIL SALES INCOME from classes, facials and reorders                $__________

4.       ALL OTHER INCOME:  4-13% checks, promotional prizes and other commissions of 1099 form from the Company,

       bank interest and dovetail commissions     .          $__________

5.       INVENTORY CARRYOVER FROM LAST YEAR (wholesale inventory on your shelves as of Dec. 31, prev. year)$__________

6.       BUSINESS EXPENSES:

       Section 1 Wholesale Purchases for the year $__________

       Section 2 and 3.    $__________

       Sales Tax paid to Company on Product Purchases...  $__________

       Handling Charges/Shipping  $__________

       Non-Collected sales tax on gifts, discounts and personal use items..                $__________

       Dues and Publications.  $__________

       Supplies.    $__________

       Discounts and Hostess Credits at Retail Value..  $__________

       Items used as Gifts at Cost   $__________

       Items used for Personal Use at Cost  $__________

       Items used for Demonstration Purposes at Cost $__________

       Product Refunds at Retail Value   $__________

       Bad Debt (money not collected on product sold)   $__________

       Promotions and Contest Expenses $__________

       Laundry for dry cleaning of business attire..   $__________

       Bank Service (money orders, cashiers checks, VISA/Mastercard fees).   $__________

       Interest paid on business loans or VISA/Mastercard for inventory/expenses  $__________

       Advertising and Preferred Customer Program Enrollment and Premiums $__________

       Postage and Express Mail.    $__________

       Labor.     $__________

       Meeting Expenses, Workshops, Conferences and Seminars..  $__________

       Travel Expense

                Plane & Public Transit and Taxi   $__________

                Lodging.    $__________

                Meals when out of town.    $__________

       Obsolete Products (discarded) at Cost   $__________

       Printing..     $__________

       Accountant Fees..     $__________

       Auto Expenses.     $__________

       Total Business Miles Driven.    $__________

       Gasoline Expense   $__________

       Entertainment (interviews, luncheon meetings, etc.)    $__________

       Charity Donations    $__________

       Legal..     $__________

       Office Rent or Depreciation    $__________

       Office Equipment.     $__________

       Telephone.    $__________

       Utilities.     $__________

       Insurance..     $__________

       Other: ____________________  $__________

ThanThanks to NSD Diana Heble for compiling this email!