You know, it doesn't matter if you sell Avon cosmetics, create crafts to sell online, or are involved in Branson real estate, keeping good records is a must. This includes every little expense that is associated with running your business, from that package of paper clips to a new computer. Document it all, even things you aren't sure about. Your tax prep guy will let you know what's acceptable or you can visit the IRS website and try to decipher what they have there for rules and guidelines.
If you don't receive a 1099 from places where you earn money, then you must be sure to document the income carefully, missing nothing.
I keep a 12 pocket folder so I can add receipts and other paperwork to it each time I have something that's business related. Then, I create a monthly rundown of income and expenses. The past few months I've worked so much and driven so much that I didn't allow time for perfect record keeping, but I still download my bank account transactions daily and my PayPal transactions monthly so at least they are on my computer when I get ready for them. Because both the bank and PayPal only keep these downloads available for a limited amount of time, it's vital to do those in a timely manner.
