New Math... I Liked the Old Math Better!
In the old days when I went to school, 2 + 2 = 4, 5 - 3 = 2, if you had $10 and spent $8, you would have $2 left. So when I set up my spreadsheet to keep track of my little business, I employed logical math strategies... This is what I spent versus what I received.
My spreadsheet has a variety of columns. Expense columns include Materials & Supplies, Advertising, Postage, Web Site Fees, Liability Insurance, and Taxes Paid. Then there are columns for Sales, Buyer Name, and Buyer Email Address. The spreadsheet is programmed to add the columns down, giving me a total spent or received in each one, and across - giving me a running balance of whether I'm showing a gain or a loss. At the end of 2010, my first year in business, my spreadsheet indicates that I have a loss of $13.11. I couldn't be more thrilled with this!
Enter Schedule C. I printed this form from the IRS website and filled it out using the numbers from my spreadsheet. After subtracting this from that, entering numbers from one line to another, and answering all of the questions, Schedule C indicates that I have a net profit of over $400! All I want to know is how I spend that $400 that really isn't in my pocket!!!
The lingering question is this... If the US Government used "old math," would we not be in the economic meltdown that we're now experiencing?
I give up.....................