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Hello welcome to the first video for the accounting spreadsheet so when you go into your spreadsheet you'll see one — one sole proprietor income statement that's for if you have not formed a business you're just working for yourself maybe you got 1099 you can use this spreadsheet if you're the LLC you've created an LLC be sure to watch at least watch the video that goes into more depth on this spreadsheet so that you understand it because it's how you should be keeping your records for next year so here we have the spreadsheet now I'm going to show you can expand this spreadsheet as much as you need so to get started I wanted to keep it small so that I could talk about it in one place, so first you can just go through your bank account is what I typically recommend or all of your accounts at the same time and start with January and go into all of them and enter the income amounts and if you keep track, and you want to put in every little detail like every customer every service you can add lines here but make sure you add them above this bottom line, and then it will stay in the calculation so for example you click right here on 11, and then you hold down and drag that I double-click, and I go insert 4 above always do above because it will stay in the calculation you won't need to reset it, so you can expand this as much as you need the way you enter your income in here you can do it whatever makes sense you know this year's gone by, so I recommend updating this spreadsheet as quickly as possible so that you can get on to the next things in your business so if you used an invoicing software, and you know that you have all of your income in there you could just put invoice software or a merchant account maybe you stripe or something you now and then just put the totals by month or if you're really in a rush you could just put the full amount right there, but it would be nice to look at the amounts by month so as you can see it goes January February March April May and then there's a total for the whole year so your total income shows on this row for each month and then the total expenses here and then net income which is your total income minus your total expenses, so maybe you had five clients throughout the year, or you get five 1099 miscellaneous a--'s from different people you could enter each one of those here and then just put the total in whatever month you want maybe approximate what month it was kind of related to so if you have more now down here business expenses any cost that you spend related to earning that income qualifies as a business expense the way to tell I know I said this in the first video if it doesn't qualify as if it's personal if it's personal hair nails it doesn't qualify no matter what you can put it in but the way you know is because you get personal benefit from it as well so it's a good example do whatever you want but just let you know, so I'll go through some of these I put here office supplies that's a big one...
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