Tracking Sales and Expenses
Tracking Sales and Expenses with EZGo
EZGo allows franchise owners operating as sole-proprietors (or pass-through entities, e.g. – LLCs) to organize their individual business expenses and track them over any desired time period. Actual sales are reported and certain expense accounts are automatically filled in by the system. Creating P&L reports is simple.
If you are operating your business as a C-Corp or S-Corp, you will need to pay wages, process payroll deductions, and create an annual balance sheet which cannot be handled by EZGO. We recommend “Quickbooks Pro with Enhanced Payroll” to manage the more complex financial needs of S-Corps.
EZGo Income and Expense Accounts
EZGo provides many expense accounts for organizing and tracking self-employed business expenses and creating a P&L. You will see most of these accounts listed on IRS Form 1040, SCHEDULE C, where self-employed persons report their business income to the IRS. The accounts are:
Sales Your actual product sales during the time period — automatically calculated by EZGO.
Shipping Sales Your actual shipping sales during the time period — automatically calculated. Shipping is non-taxable.
Earned Interest Income Your bank interest income.
Sales Tax Discount Income The portion of collected sales taxes you get to keep for paying the sales taxes on time.
Cost of Goods Sold (COGS): The cost of production only. This includes Materials and Supplies, Processing, and Labor.
- Materials and Supplies The SRP seasonal sets, packaging inserts, SRP stickers, and supplies used on set are included here.
- Processing Lab Costs Your laboratory printing costs, including shipping.
- Labor Amounts paid to your photo stylists and/or office assistant/retoucher.
Royalties The royalty you pay to The Purple Crown, LLC is automatically calculated by EZGo.
SRP Web Support The monthly software and web support payment collected by The Purple Crown, LLC is automatically calculated by EZGo.
Advertising Amounts paid for director handouts, parent handouts, and other marketing materials.
Commissions Amounts you give back to your schools.
Equipment Items such as cameras, lenses, printers, hard drives, and computers. Your tax preparer may list these items on schedule 179 for immediate depreciation.
Insurance Amounts paid for business insurance premiums.
Interest Interest expense for business loans.
Legal & Professional Amounts paid to an accountant, lawyer, or other business advisor.
Rent Rents paid for office space or on-location shoots.
Repairs & Maintenance Repairs and maintenance to equipment or office.
Supplies (Office) Amounts paid for paper, stickers
Business Taxes & Licenses Amounts paid to local and state governments to conduct business.
Travel Automobile mileage
Meals Business meals. Enter the entire amount paid. Your tax preparer is required to reduce this amount 50%.
Utilities Phone, internet service, etc.
Bank/Merchant Account Fees Fees paid to your bank and merchant account provider. This expense is listed on Sch. C. Part V.
Postage Amounts paid to ship prints to customers.
Professional Development Includes PPA membership, professional magazines, etc… This expense is listed on Sch. C. Part V.
Customer Goodwill Cookies, doughnuts, small gifts for directors and their staff. This expense is listed on Sch. C. Part V.
Other This expense will be listed on Sch. C. Part V. Try to fit your expenses into one of the listed categories above, first.
How to Enter an Expense
Open EZGo and select “Expenses.” Enter the date, amount, select a school, if desired, choose the appropriate expense account, and enter a memo to describe the expense. Save.
How to Modify or Remove an Expense
Open EZGo and select “Expenses.” Scroll to the bottom and click on the ID # of the expense you wish to change or remove. Make changes or erase all information. Save.
How to Enter Automobile Mileage Expenses
Open EZGo and select “Expenses.” Enter the date and select a school, if desired. Select “Travel,” from the drop down menu and enter a memo to describe the expense. To determine the amount of the expense, multiply the number of miles driven by the current government mileage rate and enter that amount. Save.
*There are smartphone apps available to track your actual mileage.
How to Enter “Earned Interest Income”
Open EZGo and select “Expenses.” Enter the date and the amount as a positive number. Select “Earned Interest Income,” from the drop down menu and enter a memo to describe the expense. Save. Your entry will be displayed as Income.
How to Enter “Sales Tax Discounts”
Open EZGo and select “Expenses.” Enter the date and the amount. Select “Sales Tax Discount Income,” from the drop down menu and enter a memo to describe the expense. Save. Your entry will be displayed as Income.
How to Prepare a P&L Statement
Open EZGo and select “P&L Report.” Select the starting day, month and year, followed by the ending day, month, and year and click “Go.”
How to See a Sales Report for a Specific School
Open EZGo, and select “Profit and Loss.” Select the starting day, month and year, followed by the ending day, month, and year and select a school from the drop-down menu. Click “Go.” Your income (without sales tax or shipping) will be displayed.
Alternatively, you may open PhotoCart and select “Photo Galleries,” or “List Galleries.” You will see the total sales for each gallery listed in green. Photocart numbers represent actual amounts collected from customers including sales tax and shipping. If you click on the green dollar amount, a list of sales will appear with totals forPackage Sales, A la Carte Sales, Sales Tax Collected and Shipping.