This is NOT a complete list. I don't have 67,000 hours to write a post that would fit each and every kind of business!

I. OPERATING EXPENSES

Advertising -- business cards, web pages, Internet service, T-shirts with your logo and phone number, flyers, newspaper ads

Bad Debts -- If you billed a client, and included that amount in your Revenues, but can not collect the money, it is a Bad Debt. If it's NOT included in your Revenues - it's not. Yeah, I know.

Bank Charges

Business Entertainment -- This category is a MINE FIELD! If you take a client to dinner, write down, on the back of the restaurant ticket, with which you had dinner and what you talked about. DO NOT take your SIL to lunch and deduct it if she isn't a PAYING client and you can prove it. Gifts to clients are limited to $25 per year per client.

Business Loan Interest -- Interest on personal loans is NOT deductible even if acquired for business purposes. Business Loan Interest IS deductible even if you had to cosign as a person (which you probably did. I've been in business 18 years. If the practice took out a loan, I'd have to cosign.)

Contract Labor -- Be very careful that contract or casual laborers meet IRS standards for that classification. Otherwise, they are employees. Your children, even young children, can be paid by you! You can pay them $600/yr or less without any additional paperwork. You can pay children, 17 or under, up to $4400/yr without having to withhold or pay FICA and MCARE on their wages. However, they must qualify as your child. Check this in the instructions for Form 1040. You can download that from http://www.irs.gov.

Continuing Professional Education -- seminars, classes, books, materials

FOOD & CONSUMABLES -- Everything you buy at a grocery store is either a food or some type of consumable. While you don't eat toilet paper (and if you're lucky, neither do the DCK's) you DO consume it based on the number of people using it. So, everything you buy at a grocery store is consumed. Please review my post-HIGHLIGHTING RECEIPTS for a detailed explanation of how to handle those receipts.

Gifts -- these are required in your profession. Gifts for Client Children, Gifts for Client Parents (although, these may be handled under Supplies: Crafts if you have the DCK's make them)

Insurance -- liability, self employed health, workman's comp, business

Legal & Professional Fees -- accountant, lawyer, web designer, tax prep

Licenses -- from whatever agency

Office Expense -- general supplies, computer supplies, software, postage, reference books & publications, internet server,

Professional Organization Dues

Supplies -- Generally anything you buy at a non-grocery store like K-Mart or Target. List each category separately! Crafts, Educational, 100% DC, Shared DC, House wares 100%, House wares Shared, Art, Photo supplies and Processing, First Aid, Field Trip, Activity Days,

Business Travel Expenses -- lodging, airfare, rental car, meals

Equipment Rental

Equipment Repair

Wages

Wage taxes (or payroll taxes) -- the company portion of FICA, MCARE, FUTA, SUI -- take your accountant your copy of all W-2's, W-3's, 941's, 940's and State forms

OTHER -- This is your catchall category. List each category you can think of separately. Let the accountant decide or ask me.

II. FACILITY EXPENSES

Rent -- for all 12 months

Mortgage Interest -- List each mortgage separately

Property Tax

Insurances -- List each separately - hazard, homeowners, flood, mortgage

Repairs -- my clients list Interior and Exterior separately - special projects (like painting the whole house) are listed by project.

Maintenance -- Interior, exterior, lawn, pest, pool

Renovations -- let the accountant know if you are building a 100% office or renovating the garage or kitchen. It makes a difference.

Utilities -- Electricity, water, sewer, cable, garbage, second phone line, business long distance, cell phone, beeper, security service

III. COST OF GOODS SOLD

Beginning Inventory

Purchases

Items withdrawn for personal use

Other Costs -- like freight or storage

Ending Inventory

IV. ITEMS PURCHASED FOR USE IN THE BUSINESS --

Small Toys - 100%

Small Toys - Shared

Small Tools -- All items that cost less than $100 and have an expected life of 3 years or less, can be lumped together

Small Equipment -- Same as small tools but for equipment

Small Office Equipment -- Same

Small Furniture -- Same

Equipment -- costing over $100 or a useful life of 3 years or more. List description, date of purchase, and cost.

Office Equipment -- same as for Equipment

Furniture -- same but for office furniture

V. Car expenses -- please review my post on Car Expenses. ALL of you use transportation to go buy things for the business and go to the bank to deposit client checks!!!

I repeat -- THIS IS NOT A COMPLETE LIST. You know what you use to run your business! List EVERYTHING you can think of! Let your accountant sort it out or ask me!

I KNOW there are going to be questions on this one! :-)