Money Management

No matter how big or small your Mary Kay business is, one of the most important things you can do is get organized ASAP and track EVERYTHING when it comes to money management. 

Don't worry:

We're here to help!
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Track your Sales

Mary Kay has also created an AWESOME tracking sheet which helps you stay organized, and track your sales! Although this will not be your ONLY tool for tracking for taxes, it can be very useful!
 
Set yourself up by printing 52 sheets (one for every week of the year)- even if you don't sell something for a week, still put the date on it and write "No Sales" so that when tax season comes around you won't wonder about that week.  

 

Place your 52 sheets in a binder- now it won't be a burden to update this once a week and when tax season rolls around you won't run the other way- you will jump in with confidence!

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Understanding Taxes

The first thing you need to know


No matter how big or small your Mary Kay business is, if you sold something you legally must report it. 

As a Mary Kay Independent Beauty Consultant or Independent Sales Director, you are the sole proprietor of a business and are considered to be a self-employed, independent contractor for federal income tax purposes under the Internal Revenue Code Section 162. 
 
The law requires the Company to issue a Form 1099-MISC ONLY to any Independent Beauty Consultant who, during a calendar year, orders more than $5,000 in wholesale merchandise or receives $600 or more in commissions, prizes or awards.
 
The form will only indicate that $5,000 or more in wholesale merchandise has been ordered, but the exact amount will not be stated. You are responsible for keeping track of your own sales throughout the year. 
 
You must still file taxes even if you do not receive a 1099-MISC, it is not the responsibility of Mary Kay to send a 1099-MISC. Be careful not to confuse a lack of 1099-MISC as a sign that you do not have to report
Mary Kay income on your taxes.

Another helpful resource is this great recording by Accounting Unlimited! Give it a listen, then download the documents this accountant talks about!

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Tracking for Taxes

  1. Mileage

  2. Spending

  3. Product purchased

  4. Product sold

  5. Product given away

  6. Time worked

  7. Tax Collected

Tracking expenses plays a huge part in being a successful entrepreneur because it sets you up to have a stress free tax season, as well as allows you to understand your profit, and spending.

There are many ways you can track your expenses- below I will share a few options!

That may seem like a lot to track, but don't forget- every week you will fill out a plan sheet which tracks 4 of the items on that list: product purchased, product sold, product given away, and tax collected.  ​

That leaves milage, time worked, and spending.  ​
Let's take a look at how you can track those.

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Tracking Online

An app I love is called Expensify and it is available for both iOS and Android.
It's a free app which allows you to track spending, time worked, and mileage without having to do any math yourself. It even stores your receipts for you digitally.


Track your spending 

 

The "smart scan" feature allows you to snap a photo of your receipts and it will automatically fill out when you made your purchase, how much you spent, and where you made your purchase. It will also store a copy of your receipt so you can print it if you ever needed to. 


Track your mileage

 

The GPS feature allows you to turn on GPS tracking whenever you get in the car and need to track mileage. Time that you track mileage are when driving to an appointment, driving to your weekly meeting, dropping an order off at the post office or a customers house, etc. This feature will track your miles driven and average fuel cost for that trip.​


Track your hours worked

 

You can even track hours spent working. So, before a class, when you go out to meet new leads, etc you can essentially punch a time clock for yourself. Knowing how many hours you worked is not necessarily huge for taxes, however it does allow you to understand exactly what you make per hour, or what your yearly salary is.


Organize it into reports

 

Finally, you can make expense reports for yourself which really wraps the whole up up and makes it perfect. When you download the app go right into the expense report section make 12 for yourself: one for each month. Then, at the end of the year you can track what you spent each month!​


Save your information

 

And the best part? Expensify is backed up online, so you can access your records from any computer, your app, or any internet ready device: what this means is that if your phone crashes and your app is lost? No worries! Jump on expensify.com- your data is all stored there.

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Tracking on Paper

The hardest part of tracking on paper is keeping your paper organized and remembering to bring it with you, or update it after the fact. For this reason, I love the use of an app- everyone brings their phone everywhere, so it's sure to follow you.​ Here are some of the best solutions to tracking on paper:​


Track your spending

To set up to track spending for a year you will need a filing system which includes a 12 pocket accordion file folder, one for each month. Every time to spend money that relates to your business (supplies, gifts, career coffee, inventory, etc) you MUST keep your receipt. On your receipt you should highlight anything business related. For example, if at the grocery store you purchased a week of grocery but also picked up bottles of water to hand out at a class, highlight JUST the bottles of water. This eliminates any confusion a year later as you count everything for your taxes.


Track your mileage

To track mileage by noting every activity in your planner then just compute the round trip mileage for each trip put a circle in each day box in the upper right hand corner with the mileage. At the end of the month put a circle in te upper right corner and add all of the day mileage together.
 

Track your hours worked

 

Finally, you will want to track hours spent working. So, at every class note what time you begin and what time you end. Please note: hours spent driving are NOT hours worked- if you are questioning whether something counts as hours worked, run it through the filter of "if I worked for someone else, would they pay me for this?"  Knowing how many hours you worked is not necessarily huge for taxes, however it does allow you to understand exactly what you make per hour, or what your yearly salary is.


Organize it into reports

 

Everything you track should be copied over to or filed away in one of the monthly folder you created in your file system. At the end of the year, you should be able to track every dollar you make and spend between the first day of the year and the last- which is exactly what you are expected to do for taxes, so ta-da! You are all set!

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