Tax Tips for Avon

by Sheila C. Wilkinson ; Updated July 27, 2017

Tax time doesn't have to be a nightmare just because you've started your own Avon business. With a little guidance, you can have everything organized and ready to go come April 15. Taxes only need to be filed if you show a profit after your expenses of $400 or more.

Begin at the Bank

It's so much easier to keep up with what your business is doing if you keep your Avon money separated in a second account. Most banks offer free business accounts if you already have a checking account. Deposit your checks from Avon (Leadership or Fast Start checks, for example) and the money from your customers.

Let Avon Help You Keep Records

Keep track of your Avon expenses by neatly filing your purchase orders alphabetically in a file cabinet. Every other week, Avon keeps track of what you've spent on brochures, samples, business supplies and demos that you've purchased. Highlight the expenses.

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Keeping Track of Expenses and Travel

Open a spreadsheet. At the top, make a heading for Avon supplies. In this column, write down all the things you buy from Avon for your business. Put a column for mileage; it's best to keep a little notebook in the car and write down the before and after odometer readings each time you go out for your Avon business. If you take prospects or customers out to lunch for meetings, you can deduct the cost of the meal as well.

Keeping Up With Other Business Expenses

Keep track of your postage, your office supplies (things like paper, ink and file cabinets) and other things you buy to use exclusively for Avon. If you have a busy business and add a second phone line or Internet connection, you can deduct those also. If you buy a vendor's or business license, that is tax deductible, too. Make sure you keep all of your receipts. Put the amounts in a column titled Other Business Expenses.

All Tied Up in a Bow

With a spreadsheet program, all you need to do is list the items outlined here. If that's all you know of bookkeeping, that's enough. Burn this information to a CD or print it out. Bring the whole thing to your accountant.

About the Author

Sheila Wilkinson worked as an editor and writer for "The St. Mary Journal" and has published extensively on various websites. She graduated summa cum laude from the University of South Alabama, receiving a Bachelor of Arts in interdisciplinary studies in the areas of psychology, sociology and English. Sheila owns an Internet bookstore.

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