Im just starting my home cake business and wanted to get your opinions on cake boss software.
Would that be enough as far as taxing purposes are concerned since my business is out of the home and wont be very high volume.
Any feed back appreciated!
Cake Boss is great for helping you add up your costs and determining how to set prices, but for income tax purposes I recommend either having accounting software like QuickBooks set up on your own computer, or just give your receipts and invoices to an accountant and have them take care of it.
Cakeboss is about keeping track of your orders and customers, as well as assisting you on pricing your product for a profit. It is not an accounting program. I love Cakeboss software. It is so great for keeping all my orders organized. I couldn't run my business without it.
I am a small volume home baker and I use the cake boss and if you put all your info into the software such as expenses as wel as orders and payments then absolutely. It was enough for me to do my taxes. I do not do a huge amount of volume and in my state I do not have to charge sales tax but even if you did you can include it in the cake boss software and run reports for the year with that information.
The only thing I can think of that cake boss would not do for your tax wise is the depreciation of assets. I'm not account it so please forgive me if I explain this poorly or incorrectly. But take for example you purchase an edible image printer. That is an assett of your business. Generally you don't write large assets off the year you purchase them. Generally you write them off depreciated over time. So if it was $1000 you may be able to claim a percentage of that over the life of the asset, maybe a 5 year period. Does that make sense. Cake boss won't help you do that. I will say that talking to my CPA friend about this last year when I did my taxes, she said that since the items I purchased were all under $300 that I was probably safe writing them off entirely in the year I purchased them. I'm small..the most expensive thing I bough for caking was my Agbay. If someone has more tax knowledge please feel free to correct any of the above.
Small businesses can typically deduct the entire cost of a large capital expenditure (up to $500K) in the first year under Section 179 rules, in which case you do not have to depreciate for tax purposes. You'll still need a depreciation schedule when calculating overhead cost contribution for the expenditure though.
Thanks guys! This was helpful!
I'm just curious - did you end up purchasing CakeBoss software? I am just getting started myself and am doing some research on the software. Any feedback? Thanks!