Is There a Way to Create an Independent Contractor Expenses Spreadsheet?
If you are someone who has been asking the question “Is there a way to create an independent contractor expenses spreadsheet?” you have come to the right place. I will take you through a step by step process of how to create a spreadsheet for an independent contractor and which chart to use.
I must start by saying that creating an expenses spreadsheet is no easy task. There are many factors to consider and many things to measure. This article will look at a few simple steps that will get you started.
The first thing to do is to gather as much tax information as you can. It is possible to obtain this information from the IRS website or directly from the IRS.
You need to take some time to track your income taxes. Some people believe that using their W-2’s to track income taxes is the best way.
I personally recommend using only withholding statements to track withholding. These are statements that go out from the IRS and show the due date for each withholding you are making, the number of months you have until your next withholding, and how much money you are withholding per pay period.
Remember that withholding statements need to be generated each month. When you make a payment on an account, the withholding would change to reflect the payment. Each time a payment is made, the payee would get paid twice, the first time by the payer and the second time by the payee.
Once you have the information gathered about your wages, expenses, taxes, and monthly gross, it is time to collect it all together. On your own computer or a spreadsheet program you should create a table showing your gross monthly income, expenses, taxes, and net income.
You should then divide up your expenses by the amount of money you are making every week. I recommend dividing your expenses by ten. A more exact division would depend on the amount of money you are paying out to every person every week.
Once you have decided how much to pay out to every person every week, then you should convert these expenses into a category. Usually I divide the expenses by the number of weeks per year I am paying them and divide the expenses by the amount of money I am paying out to every person each week.
Next I will divide the expenses that I have determined and tracked into a category called net income. Then, in order to calculate the amount of money each person is receiving on a weekly basis, I take the gross income minus the expenses divided by two and then add that to my total. The amount of money each person is receiving, plus the expense paid, equal my net income.
Now that you have a basic overview of how to create an expenses spreadsheet, I encourage you to spend some time tracking down the different factors that affect your expenses. You may find that you need to re-evaluate your expenses on a regular basis and set up a budget. YOU MUST SEE : income tracking spreadsheet