It’s the beginning of a new year. I will spend the next few weeks making sure my ducks are in a row, adding up receipts, and figuring out how much money I made in 2013 and how much money I owe the IRS.
Part of this process has me sifting through my “book” from last year to find some of this information — which has brought me to the realization that when I change my prices, the online system applies those prices to the past as well as the present.
Essentially, I changed some of my menu prices about mid-year in 2013. Now I’m looking back at last January and realizing that the services that were scheduled show those services at the current prices — even though my records show what I charged at that time.
None of this seemed like a big deal to me, until I started thinking, “What if I get audited?”
Would the IRS ask me for the log-in information to view my online book? Would they want me to print it all out? I have no idea. I guess I’ll find out when and if they ever ask. But with an entirely online system, there isn’t really a record left of my price history. I don’t even have brochures printed anymore because no one wanted them.
So whether on my website, the online booking system, Facebook...whatever, when prices are updated, the previous prices are gone forever.
Would the IRS look at my records and see the difference between what I got paid and what the currently listed price is and accuse me of not keeping appropriate records? Is my current — and admittedly rather laid back — approach to recording my income going to cause me grief in the future?
Looks like “consult with CPA” is getting added to my 2014 to-do list.