- UBAM BookKEEPING -
Here’s an EXAMPLE of how you may need to split up a transaction to categorize the different parts:
-You work your town's Spring Fling Event, at which you offer a 'Buy 14, Get 1 Free' Promotion.
During said event, you sell $450 worth of books. $300 of those sales processed through Square. -You also track the 'free books' you' gave and those total $65.
TOTAL INCOME (from Event): $486
TOTAL COMMISSION (from your purchase of books): $85
Let's talk about what your expenses for the Spring Fling would include:
Booth Fee: $50
Cost of Goods Sold (COGS): $540 (Bought $500 worth of books + 8% tax + free shipping)
Advertising: $10 to add bag stuffer for the first 150 people in attendance
Promotions: $65 (from the Buy 4, Get 1 Promotion)
Bank & Service Fees: $8.25 (Square charges 2.75% on swiped transactions)
Travel Expenses: $15 (Purchased coffee in morning and a sandwich for lunch while at event)
TOTAL EXPENSES/DEDUCTIONS: $688.25
Oh, and don't forget to note your mileage so you can write-off that deduction at the end of the year too! Mileage: 17 miles each way = 34 miles total (based on 2017's 53.5 cents per mile = $18.19)
NOTE: All information posted above is subject to change. As Home Office updates policies and systems, these resources may need to be altered. Please notify the Leadership Team if additional information is available and has not been updated on via the Hub.