tossing the shoebox: a guide to managing your financial paperwork andrea k. smith, ci, ct, sc:l

Tossing the Shoebox:

A Guide to Managing Your Financial Paperwork

Andrea K. Smith, CI, CT, SC:L www.andreasmithinterpreting.com * [email protected] * 443.359.0733

http://www.andreasmithinterpreting.com/

mailto:[email protected]

© 2009-2011 Andrea K. Smith, CI, CT, SC:L DO NOT REPRODUCE OR DISTRIBUTE WITHOUT PERMISSION

What Do These Have in Common?


Why the Fear?

• Mama told me this isn’t right• Doing it wrong• Not sure where to start• No time• Too many choices for methods• Just too darned lazy


INVOICE PROCESSING


Lifecycle of a Job


Calendar Girls (and Boys)

• Documentation for IRS paperwork• Color-coding in Your Calendar• Billing and contact details• Notation that the invoice was processed


Lifecycle of a Job


Create an InvoiceDate of Assignment Time of Assignment Location of Assignment

Name of Deaf Client Invoice Number Invoice Date

Invoice Due Date Tax ID Number Address for Remittance

Billing Address for the Client

POC Name POC Phone Number/Email

Rate per Hour Amount Due Terms and Conditions

Your Name Your Phone Number Logo/Graphic/Advertising


Contact Information

• Christopher Shaw, [email protected], 614.595.6927, www.bootleg.etsy.com

• Gerard Williams, [email protected], 202.352.0236, www.metrointerpreting.com


http://www.bootleg.etsy.com/


http://www.metrointerpreting.com/


Lifecycle of a Job


Invoice Tracking

• Tells you how much you are owed • Gives you an idea of turnaround time• Provides data for end-of-year totals• Catches errors and omissions


Sample Excel Spreadsheet

• Sample Summary of Invoices Spreadsheet


Soft Copies/Hard Copies

• Soft Copies must have back-ups!• Hard Copies are a tactile reminder• Soft copies sent to clients must be in a non-

writeable (fax, pdf, jpeg)format • http://www.primopdf.com/• Send a hard copy for a first-time client with W-

9 included• http://www.irs.gov/pub/irs-pdf/fw9.pdf

http://www.primopdf.com/

http://www.irs.gov/pub/irs-pdf/fw9.pdf


Lifecycle of a Job


• Make sure stubs include the date paid, check number, and invoice paid!

• Checks with no stub need to be photocopied


PERSONAL FINANCES


Personal Bills

• File by month – don’t sort them every month• Ask for electronic copies– Phone– Electric/Gas– Water/Sewer– Internet/Cable– Credit Cards– Mortgage Statements


Electronic Banking

• Electronic invoices can link to bank and then be paid automatically without writing a separate check

• Have proof of checks sent– Bank should cover any late fees

• Find out about bill paying services through your bank– If it’s not free, find another bank!


Electronic Checkbook Programs

– Tracks checking, savings, and credit cards– Allows reminders for upcoming payments– Prevents overdraws due to forgotten expenses– Automatic downloads of transactions– Transaction coding makes for easy year-end

reports


Most Common Planning ErrorDate Check Starting Balance Ending Balance

2/1/2009 Payment for Services

523.00 2523.00

2/1/2009 Mortgage/Rent 2532.00 1532.00

2/5/2009 Car Payment 1532.00 1150.00

2/10/2009 Insurance 1150.00 800.00

2/12/2009 Utilities 800.00 426.00

When will you get another check?


Pop Quiz!• Corrections or amendments can be made to tax returns for up to 3 years.• Financial records must be kept for 7 years.• The average American credit score is 680.• A good credit score is above 801.• The COLA (cost-of-living adjustment) for 2008 went up 5.8%.• The IRS charges 5% annual interest on underpayment of taxes.• If you start young and faithfully save, you should set aside 10% of your

income annually for retirement. • The maximum interest rate that a credit card can charge is without limit.• The highest known interest rate that a credit card charges is 33%.• The IRS tax code number for interpreters/translators is 541390.


BUSINESS EXPENSES


What Makes a Home Office?


Reasons to Have a Home Office

• Deduct a percentage of your total home rent/mortgage and utilities

• Deduct 100% of costs incurred on just the home office• Establishes your ground zero for commuting miles

No Home Office With Home Office


Calculating Mileages


Tolls/Taxis/Metro

• Get separate SmarTrip cards

• Get separate E-Z Passes• Make sure taxi receipts

include the date, location start/finish, and the total amount paid (including tip)!


Deductions

• Communication Services: cell phone, internet, second land line, fax line, ringtones, etc…

• Advertising: Google AdWords, business card printing, creating and hosting a website, schwag

• Interest: Business credit card or loan interest• Professional Fees: Membership dues!• Credit Card Processing Fees• Bank Fees


Deductions - Continued• Conferences/Conventions• CEUs!• Health Insurance• Books and magazines for your business• Equipment purchased for your business • Clothing canNOT be written off


Deductions - Continued

• Pens, pencils, paper, notepads• Flash drives• Postage• Printer Supplies• Tape and Stapler Supplies• Computer programs used for work• Supplies for Interpreter Go-Kit (nail clippers, maps, batteries,

etc..)• Music purchased for concerts you will interpret


Business Travel

Out of Town Travel Meals/Entertainment• Internet Use• Air Fare, Train Fare, etc.• Hotel Charges• First and last day subject to

the 2/3 rule

• Meals with other interpreters

• Money spent while at conferences

• Tickets purchased for events directly related to work

• Make sure you keep documentation!


Managing Cash Receipts

• Don’t pay cash. Use a business credit card.• Cash receipts degrade quickly. Enter them on a

spreadsheet and store in an envelope for tax time.• www.neatreceipts.com• If you MUST use cash, get a receipt that includes:– Date– Time– Location– What was purchased

http://www.neatreceipts.com/

tossing the shoebox: a guide to managing your financial paperwork andrea k. smith, ci, ct, sc:l

Documents

permission slide

calendar invoice

job job request

calendar job completedinvoice

spreadsheet invoice

invoice processing

invoice tracking

client check