We'll proactively keep you up to speed with your bookkeeping details. Got urgent queries that require immediate answers? As a carpenter using Bench, expect our prompt reply within one business day or even less.
Our platform enables you to streamline your data inputs from most primary providers in an effort to minimize common errors. We work closely with vendors such as Gusto, Stripe, Shopify, and Square—ensuring your financial records are always spot on. Ideal for carpenters whose focus should always be their craft, not the books.
Say farewell to mounds of receipts and laborious manual record-keeping—we automate entries directly from your integrated accounts. Garner insights from one unified dashboard, simplifying your comprehension of your carpentry business’ financial state, empowering you to make well-informed strategic decisions.
DR. BUKKY KOLAWOLE
As a carpenter, there are numerous specific expenses that you can track and deduct for your tax returns. These include:
- Materials and supplies: All the materials and supplies needed for your carpentry work, such as wood, nails, screws, adhesives, finishes, etc.
- Tools and equipment: The cost of purchasing or renting any tools or equipment for your work such as saws, hammers, sanders, drills, etc.
- Vehicle expenses: If you use your vehicle for work purposes (like transporting tools, equipment, or materials), you may be able to deduct the applicable portion of your vehicle expenses.
- Home office expenses: If part of your home is used specifically for conducting business, you may be able to deduct a portion of your home expenses such as mortgage interest, property taxes, utilities, repairs, and maintenance.
- Subcontractor expenses: If you hire subcontractors to help with certain projects, those expenses are deductible.
- Training and education: Any cost relating to courses or seminars to improve your carpentry skills or business knowledge is deductible.
- Insurance: The cost of insurances related to your business, like liability insurance or commercial property insurance, is deductible.
It's imperative to keep detailed records of all these expenses throughout the year for accurate bookkeeping and ease in deduction during tax season.
Inventory management and bookkeeping for a carpentry business involves careful tracking of all financial transactions, including purchases of raw materials such as wood, hardware, and other supplies, as well as costs related to the creation and sale of finished carpentry products. An experienced bookkeeper can accurately record these transactions, ensuring that business owners have a clear understanding of their operational costs and profitability.
In terms of inventory management, it is crucial to keep track of materials on hand, items in production, and finished goods, as well as understanding the cost associated with each step of the production process. This information is vital in determining the cost of goods sold (COGS), and is a key element of financial reporting and tax preparation.
Effective inventory management can also help carpentry businesses avoid overstocking or understocking, which can both impact the bottom line. By partnering with a knowledgeable bookkeeping service, carpentry businesses can ensure they have a firm handle on their financials, allowing them to make informed decisions about their operations.
There are several guidelines you should follow as a self-employed carpenter to maintain income and expenditure records. First and foremost, it's important to keep track of all income sources, including cash payments, cheque, credit card transactions, and digital payments. Also, retain all receipts, invoices, and bills related to business expenses. This includes materials, tools, transportation costs, advertising, and any other business-related costs.
Moreover, it's best practice to use a separate business bank account and credit card for all carpentry-related transactions. This can streamline your bookkeeping and make it easier to distinguish between personal and business expenses. It's also advisable to consider using a reliable bookkeeping software. Such tools can automatically track income and expenses, generate reports, and simplify tax filing.
Lastly but importantly, remember to categorize your expenses correctly since this can affect your taxes. If you're unsure, consulting with a bookkeeper or accountant can provide further guidance. Keeping regular records and staying organized is valuable not just for tax purposes but also to monitor the financial health of your business.
Nope! All bookkeeping is completed in-house.
Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.