Tax Essentials for Check Cherry Users: Sales, Income, and Practical Tips

0:16 hey guys we're going to wait for a couple more minutes till uh Matt comes on and we'll get started so te mhm we're going to wait another minute here and uh and we'll get started Matt's going to join us hey Jud hey hey there he is right on time um yeah so everyone thanks for joining us um today we're

2:10 going to talk about tax Essentials um for check Cherry users specifically um Matt's got some slides he'll be doing most of the talking um and if you have questions feel free to you know chime in in the chat uh during the presentation um I guess you know in prep prepping for this because we're a little concerned about time um so we'll see kind of what gets in here

2:33 and what doesn't but the idea is that we'll just kind of cover um tax uh as a kind of a bigger issue for check Cherry users um and and go from there so Matt I suppose if you want to take it away with your slides that'd be awesome um again I'll be monitoring the chat so if you have questions feel free to chime in there and I'll uh I'll go from there so

2:54 okay T tax is such a fun subject I can't wait this is why we we do business right to to do taxes at the end of the year it's the fun part so um so yeah as Jud mentioned we're going to be covering tax Essentials for Chet share users and what we're going to be covering um just kind of a brief overview is um I guess first off this is going to be us-centric so um you know a lot of

3:26 the principles will hold for other countries but um but we're going to kind of use the U uh you know what a Us customer typically has to deal with is as the primary focus here um and we're going to cover um both sales tax and income tax so we'll start kind of going through some of the sales tax features and requirements and then move on to income tax

3:48 and uh we'll cover what forms to expect so all your 1099s and things like that um and then um probably most importantly is where to find the information in check Cherry so what kind of reports do we have um available where can you find stuff um some tips and tricks around around getting um getting the information you need and so um and we'll have a few other considerations

4:13 um definitely one thing to keep in mind every business is different uh probably everything I say you know there's probably an exception in a caveat and you know asteris and everything else so um you know definitely uh you know keep that in mind um in the tax details you're going to Bas vary based on where you're located where you do business what type of business you have um what

4:36 type of accounting you're doing and things like that so um ultimately you know everything we say is just kind of our our uh experience dealing with cck cherry dealing with um you know the question people ask us but yeah talk to yeah talk get get a good accountant SL Finance professional that you trust is what I would say and this this webinar is just informational purposes to help you get

5:00 understand um kind of the bigger picture of tax and and also how chech Cherry helps uh you accomplish and and meet your tax obligations and so um so I guess the first thing is you know does che Cherry do my taxes for me and unfortunately the answer is no um you know we we try to um provide tools and reports and the information you need um and tools to track things

5:25 like what the sales tax is for your different different um locations different events things like that um but we're not able to do the taxes for you um you'll have to you know you have to do that that on your end and that goes for both uh collecting and remitting sales tax and and um any income tax uh you know considerations you have and so to start with let's let's Dive Right into sales

5:49 tax so um you know sales tax obviously is you know on your invoice that's the that's a little extra line item that's going to show you know the the extra 7.75% or 10% or whatever the local rates are where where you're located at um that's typically going to be something that's added to the invoice to the subtotal and then at least in the US and then um the total will be added on to that um

6:15 and uh the first question you kind of need to consider is like do you even need to collect sales tax and unfortunately that's not an easy um answer uh not all states require sales tax on services so um so it really does depend on on the specific State you're located in um and it depends on where what states you do business in so if you go across state lines there might be different

6:44 tax requirements in each state um unfortunately you know there are tools online you know you can search Google for for you know for your state and things like that but it you know there's a lot of uh a lot of variation across different locations so and also we have customers that some Services they consider taxable and others they do not um some some states have Concepts

7:08 like personal tangible property triggering sales tax I've seen photo boo say that if they print and hand something to people that they're exchanging personal tangible property whereas if it's just digital only somehow that that is not taxable um so again you got you're going to have to ask uh somebody you trust find a good professional in your state um to get that answer um but

7:33 it really varies basically by service even in you know say to take California as an example um services are not generally taxable here so um you know generally if you're DJing a wedding or something like that you would not pay taxes but a lot of people um you know have the understanding that if you give somebody a print out then it becomes a and so sometimes people will have

7:56 certain services that are taxable certain add-ons that are and they're not and chech Cherry's job is to basically give you the tools to make it as easy as possible to comply with you know your requirements and kind of what your account recommends you do and you can definitely also reach out to local local sales tax uh you know to franchise tax yeah they'll have information

8:15 as well um unfortunately a lot of times it's just not clearcut you know they'll they'll have information on say photographers photoother and so it's kind of it's It's always tricky feel figuring that stuff out so um and then of course you've got to file your sales tax returns so um you know the filing um there's another number of you know how that process works varies by location

8:41 generally how it works is you uh register with whatever state you're doing business with and you need to um file uh periodically to report how much sales tax you collected and then um and then you write a check for that amount to them yeah and I just want very by location though so yeah and when you're collecting sales tax you're basically operating as a tax collector on behalf

9:06 of the state right and taking money from people but that's not yours you have to then turn the money over to the state periodically and that's often called remitting or remitting funds and it varies by state and by the amount of Revenue you have whether you got to do it monthly or quarterly or whatever it is yeah yeah based on um when you do register they'll give you the guidelines

9:29 but um they'll tell you what that frequency is and states it the the more volume you're doing the more quickly they want their money and so if you're doing you know five grand a year you probably can just report that sales tax once a year and you're fine whereas if you're doing millions of dollars a year they're going to want that constantly so so you have to find out the

9:50 filing frequency based on how much business you're doing and as that increases you know you need to keep an eye on that as well um a lot of States also require you to fill out what's called a zero return and what that means is even if you didn't earn money um you're still responsible for filling out that return and even if it says nothing right they're like I I swear I didn't collect any sales

10:15 tax okay that's funny and um and then you've got to keep track of any exemptions as well so if you're dealing with um tax exempt organizations um you know a lot of times you'll still need to report that you earn this Revenue but you also can report that you know that that was not taxable and so um so it's your responsibility to collect that information um you know if they need a

10:41 a tax certificate you know a proof of that you know you you need to be able to provide that on f um and then at the end of whatever that period is you know annually uh quarterly most commonly um you've got to file and remit that and um you know typically that's going to just involve going to the website filling out some some papers or a form or something like that and sending that in um and

11:07 so let's take a quick look at sales tax in cck Cherry so where do you find this information um go to so my screen's probably a little bit small huh Jud me me just share this window here okay so and as you're doing that I just want to remind people chat with us anytime you have questions about chick Cherry's features um you know anything like that um also if you have feedback um keep in

11:41 mind we can't really advise you on tax exactly um but we do want people to understand um what Check Cherry does and kind of our understanding the lay of the land for our customers we think it'll be helpful awesome so um so first off let's just take a quick look at how you even start collecting sales tax tax you know if this is the first year you're collecting sales tax um you know you've

12:03 got to turn that on and start tracking it so um to first turn it on you're going to go to manage business settings and then tax and you know if you're just coming to this page for the first time it's going to say something like you not enabled sales tax collection on your account click here to set up and so we'll click that and it's going to have us give some kind of a name doesn't really

12:25 matter um you know if you're doing different tax settings in different states you know you could call this something like Nevada tax uh Arizona tax things like that but we're just going to leave it as default for now um and then we're going to leave this option here that says automatically calculate sales tax rate based on venue location and what that'll do for you is whenever um we

12:48 able to collect the venue from the customer so whether that's like booking or you know when you're sending them a proposal things like that once they enter the address we'll call out out to um to tax jar who has tax rates for all the different locations across the country um and they'll look up the tax rate for that location and keep in mind that you know tax rates can vary

13:12 literally across the street they can have you know different tax rates if you happen to fall in a different uh you know District yeah and some some examples of that is if you're in a special Entertainment District right where there's wedding venues or whatever it is and it requires more police force that type of thing sometimes the tax rates will be more more loc they'll have

13:30 higher local rates you know that type of stuff um so if you're accountant or financial professional suggest that you need to collect sales tax based on where you're servicing customers the venue this option is really good uh and it makes it super easy and he'll show you also in the reporting but it just automatically pulls the tax rate for wherever you're setting up shop for that event

13:53 um and we do it at no extra charge so it's really an awesome feature and um yeah and then if if you don't want to use that for any reason I mean you can also set up a flat rate um so if you just you know you know in your state you always need to do 7.75% uh you're welcome to do that as well um but we find most for most people um setting it to automatic works best and then down here you can

14:17 limit it to certain States so if I wanted to limit it to you know these three states um again that's not super common generally people just leave it on for for all states yeah once you do that uh Once you turn on you know set up your first tax Zone um uh well first off you can um you know recommend trying it out you know if you just need to quickly look up a tax rate or if you

14:39 just want to make sure you know it's doing what you're what you're expecting you can drop in an address there and um you know and look up the tax rate um but once you uh have a tax Zone set up then you're going to start to see throughout check Cherry um anywhere there's pricing there's also going to be a little taxable button so so you know by default that's going to be enabled

15:01 for all of your packages and add-ons and things like that um but if you do have something that you know is not taxable you can always turn that on on a caseby casee basis similarly if I go to an add-on you know for some reason this scrapbook thing is not taxable I can just turn that off and that'll avoid charging sales tax on that and as the customer goes through that process you know as

15:25 soon as we're able to collect that address we'll start showing the the the tax rate for them um you can also see on an invoice you know we'll show the tax rate of course at the bottom um and then we'll show for each line item whether it's taxable or not so that little T indicates it's taxable um you know in this case the subtotal is 850 and and you know the taxable amount is 850 but you might

15:50 see a different number there if certain items were not taxable so um just something to keep in mind um probably most useful though is um before we do that one other thing to look at if you ever do need to recalculate your taxes um there's a few ways you can do that uh when you edit the address by default there's going to be a recalculate tax button so that'll that'll look it up automatically

16:17 but if you ever need to just you know manually change something um you can do that as well so if for some reason you just want to set that to non-t taxable um you know you're welcome to do that and the tax will be hidden uh you can also find that under the booking settings we'll have the tax rate there as well so if I wanted to specifically set it to 10% um you know you can do that as

16:38 well and probably most useful for when you're ready to report your sales tax um you're going to want to go to sales and Reporting and look for the sales tax report that's going to have all the numbers you need for um uh for reporting that so you know this year just started out we don't have any taxable transactions here let's go ahead and set this to 2024 um and I'm going

17:08 to set that to December 31st and we're going to search and see what comes up here um and now I've got lots of different things listed right so I've got looks like I've got some um you know tax for Buford County um wherever that is you know they're charging 7% uh Harris County 8.25 % a lot of different you know we have a lot of different uh just kind of sample location account

17:34 yeah yeah um you can also under the customize options um well the reason we break it up that way is generally when you're reporting sales tax uh they're going to want to know you know each county is going to want to know how much you um generated for that County so uh so generally you kind of have to break it out sep I have the impression this is a quarterly thing for most of

17:59 our customers I could be yeah B yeah um you know and so um and then of course you can come in and customize that so if you don't need to group it by county or city um you can turn that off and get a more compact view and say okay these are all my payments You Know What's the total that's how much I um that's how much I owe and that's how much I need to report on my form uh you can

18:25 also do things like if you know need to know the um the corresponding sales amount for instance some states require you to um you know show how much money that you know for instance on this one there was a $459 payment and of that $40 was taxable um you can do that as well so I would say most common you know settings uh you can also limit by brand if you have multiple Brands but

18:52 most commonly you're just going to need to change the date um and you'll be all set um generally speaking sales tax is Due based on when you received payment so um with event companies it's a little tricky right because a lot of times you take a deposit UPF front and then you actually provide the services you know potentially in a different year um generally speaking the payment

19:19 date um you know if you just take the if all you took was the deposit that's all the sales tax you would have to report at this time um unless you know unless your accountant tells you something differently and then of course you can download that report as well so if you need to send that to your accountant or um you know just for your records

19:41 uh definitely feel free to download that that'll generate um an Excel spreadsheet of that I think that's about it um we have a question here hold on so first Jody says hey she's calling from Seattle thanks for doing the class so awesome jod thanks for coming um she says so the taxes are based on the data of payment and not the date of service generally

20:06 speaking yes so that so there's two types of accounting um what's called Cash accounting and acral accounting um for most small businesses cash accounting is going to be much simpler and basically it means when when you got the money in hand um that being said like I said there's always exceptions you know if your accountant says no you need to pay the full amount out um you know they

20:30 might know there might be different different rules where you're located uh but generally it would be the portion that you've actually received based on that payment date not based on the event date and the way our tax report breaks it up um we do break it up so that it's only you know if if you have a 30% um deposit only 30% of that will be applied to the tax it's cash accounting

20:56 um and acrel accounting as the other one um and cash accounting is basically as I understand it is you know how much money comes in and goes out it's pretty straightforward um where cruel accounting does things that are a little bit more um thoughtful when it comes to like the date the services are provided and you know all that stuff um but like I say I think the vast majority of our

21:21 customers do uh cash-based accounting awesome okay and Tim says I know I received 10199 from stripe for all credit card payments but do I receive anything official from Check Cherry that I need to file um we'll get into that one just a little bit so um so that's a good seg into hold on he says based on tax collected so check Cherry does not have an obligation to report to the government

21:54 the taxes that you say you've collected um so we don't send anything um if you use check Cherry payments for credit card transactions and actual money is moving around um will'll cover later but a 1099 K will be issued but as far as in it's not really Check Cherry's job to enforce you know like I mean somebody could go in and delete events and payments for all we know you know what I mean

22:18 it's not really something yeah so um and then uh claude's got his hand up so go ahead and unmute yourself and ask your question if you'd like uh hi thanks for doing this this is Claud speaking um has anybody uh had a customary chart with a resale certificate for sales tax so what they're saying is that um so it's not a nonprofit it's not a church it's not a a school right so they

22:44 are saying that because are reselling my service I'm not supposed to charge taxes because they're already charging their is that in practice in this industry I can't speak as to the event sorry Matt go ahead yeah well yeah I think that's a great question so in general um resale certificates um they kind of make a little more sense when you think of you know say you've got a a storefront

23:09 and you buy um you know you buy something from Costco and then you resell it to the public you know you would give Costco your resellers permit they wouldn't collect that sales tax and then um but you would collect the sales tax when you uh sell the product um I'm not super familiar with uh with Services um I don't see you know ultimately it's up to them if they have a reseller permit um

23:37 it's on them whether you know they're complying with the laws or not um so if if they're able to provide you a certificate um you know you can use that as evidence that you know they said they were non- taxable um you don't have you know a way to you it's not really on you to verify that Beyond them giving you the certificate um and so yeah you would you would not charge themselves Sal tax and

23:59 then if you know if what they're not what they're doing is not right you know that might that might be a problem for them down the road I think what I would recommend is reach out to the franchise tax Port of your state and just tell them what's going on but I think Matt's kind of right in that it's probably you know it's they're probably going to say yeah if they're reselling we're not going to

24:16 charge tax twice the same kind of for the same trans double taxation effectively um you know you're acting as basically you know an agent or an employee or a contractor theirs in many ways and so there's no need to do the sales tax like I don't pay sales tax when I hire a contractor or something like that but absolutely reach out to the franchise tax board and see what they say just

24:40 kind of keep that just cover your bases is what I would say yeah awesome so moving on to income tax um you know obviously we you know that's that's your end of the year you know you're filling out your 1040s your 1040 e your schedule C's you know maybe you're maybe you have a tax professional maybe you're using Turbo Tax things like that um your income taxes are you know kind of separate

25:06 from your sales tax so um you know we're not able to get into you know the nitty-gritty of filing returns or any of that but uh kind of a a bird's eyye view of of how to think of it and what types of questions what type of information you're going to need um is something we can can kind of do um and in general you know you're going to owe tax on all the revenue you collected during the year

25:33 um still zoom in okay um so you're going to owe tax on on the revenue you collected during the year and it's worth remembering you know kind of emphasizing that it means collected during the year so again you know if you're doing cash accounting um if you collected a deposit this year for an event next year you're only going to treat that that money that you collect did as income um

26:00 when you're filling out your taxes um you know similarly if you have if you refunded money um you know that's a minus that's a negative and so uh you can basically kind of look at how much money you collected this year versus how many uh it doesn't really matter how many how much booking volume you generated or things like that it's uh primarily you know assuming you're doing

26:22 cash accounting which I think most most should be um it's going to be how much money you collected and the other thing to keep in mind or kind of emphasize is it doesn't mean all revenue so it doesn't matter um you know you're going to get different forms and we're going to talk about that a little bit but you know as far as for tax purposes right um you know they're looking

26:44 for the total dollars you earn regardless of any paperwork anything you know anything you receive from anybody um you know they're expecting that that you pay on all all that which doesn't mean everybody does but but you know but that's that's the expectation and you know if they catch you um not doing that you can get in trouble um and then uh kind of the next thing to keep in mind

27:09 is in general uh most business expenses can be deducted um you know so you've got your income you know minus your expenses and there's a lot more that goes into it but at a very very high level you know you owe tax on your income minus your expenses um and so like M I can just chime in some common expenses like equipment and supplies uh your check Cherry subscription right

27:39 um anything that you're using that's an expense related to the business um you can reduce your um basically taxable income and so Insurance Bank fees you know accounting services all that stuff yeah training and development some people go to the phod with Expo that's business expense um fly to Vegas all that type of stuff so um there's a lot of different ways to reduce your taxable

28:05 income um and again I think a good accountant um you know if you're doing meaningful volume um will pay for themselves and it's great to have somebody that's uh Savvy and can help you uh maximize or minimize your tax obligations in a proper way yeah absolutely and um yeah as Jud said you know um it's really um an accountant is you know can help a lot with this but um is ultimately

28:33 determining what is deductible is complicated you know there's a lot of you know for instance if if I do an event and I hire a Jud to help me out you know maybe I make a thousand bucks and I pay him 500 um I took home 500 so that's great you know um it's pretty straightforward um you know similarly if if I had payment fees on that payment processing fees or um things like that you

28:57 know that would also be deducted um where it gets a little more complicated or things like equipment so if you've bought equipment uh generally the IRS requires you to kind of spread that over several years um and basically depreciate it over time and so you might have spent you know five grand on photo booth but you can only deduct you know a third of that or a fifth of that or something

29:19 each year for five years meals and meals and entertainment right that's a little different too meals and entertainment it's a percentage so you can only deduct a percentage of um of it so uh travel is another one that's interesting you know with travel it's generally uh there's a per mile allowance you can take and so you kind of have to keep track of how many miles you drove

29:43 and and that doesn't necessarily just mean to events you know it can be to the bank or to you know all sorts of things um but you do need to keep track of that and then you're able to um take a per mile deduction as well and so to me that's where an accountant pays for themselves um you know if you've got a moderate sized business um you know the the amount of money

30:05 that an accountant will save with different you know knowing how all that works um they'll generally pay for themselves so uh things like offense deductions and when you that and phones and internet you know there's a lot of a lot of different things that that somebody can can deal with um and so um so yeah so kind of going into uh what forms should you expect so um

30:31 basically the short answer is you're going to typically get a 1099 K from any payment providers and if you're using check Cherry payments um you'll get a check you'll get a 1099 K from us um you'll also get one you know if you're using venmo stripe Square uh zel things like that you also may get a 1099 K from those as well

31:00 and that's only going to report the money received via that specific payment provider so what that means so if say you're using check Cherry payments and you know two-thirds of your payments are via credit card and the other third are from you know venmo and check and cash and things like that that you're putting in manually your 1099 K from jet Cherry is only going to report the money

31:24 that you know basically went through Chet Cherry payments all the the other stuff you know will not be reflected on that paperwork um you know and so and you may not even get one if depending on your volume so over the years the threshold has been decreasing it uh last year a lot of our customers didn't get them because the threshold was higher um this year the threshold is $5,000

31:51 so if if you did more than $5,000 in Revenue with any of your payment processors so Chet cherry stripe uh you know venmo you'll likely get one of these um in 2025 that's going to decrease to 2500 and in 2026 anything less than 600 will generate one of those and I would say the 600 uh limit to me is them really cracking down on the ven moel stuff you know what I mean

32:18 like absolutely they're going to be cash app I mean all that like I feel like you're going to get a lot more there's going to be a lot more 1099 K issued and my understanding the 1099 is uh helpful for the government because you're basically having the person that you know uh recorded income that doesn't owe tax on it report it to the government right and so

32:39 they make uh basically requirements for people in the position of knowing that money changed hands to to report to the government that hey Jud transferred $30,000 during 2025 via zel type stuff um and so of course they like that because then they could track down people who are avoiding tax yeah exactly and um yeah as Jud mentions it's you know it's worth emphasizing at 1099 um there's a

33:05 few different versions of it that's not really for you really it's for the government it's how they can track you and and track the flow of money um you know you've got to report you know presumably you should be reporting at least what you received on that you know it may even be a higher number than what your 1099 say um and back on the subject of the thresholds um

33:25 even if you're under $5,000 some states do have lower thresholds and so you might get a 10 99k even if you're under $5,000 because your state requires it so and and I just want to say one of the tricks here is to just in my opinion do your taxes properly right have good help a professional and you know pay your estimated taxes quarterly you know stay on top of it don't wait until the

33:53 end of the year um to to do everything and kind of Rush and scramble and all that stuff if you kind of just make it part of business procedures that you do on a recurring basis basically and you'll be better off exactly and um so uh your 1099s um whether they're from C Cher or other payment providers um they should arrive by January 31st that's the that's kind of the cut off so you

34:21 should you know obviously things can get delayed or whatever in the mail but um you know we'll have ours sent out and and every everybody else that that is sending you one should should have them sent to you you know arriving by January 31st um and those can come electronically or they can be a physical paper um you know depending on on how you uh how you set that up when when

34:42 you got a notification um and again just to kind of emphasize you know you owe tax on all revenue so um you know despite even if you don't get a 1099 they're still expecting you to report it so um you Al also might get other 1099s from other organizations so if you do business with somebody um you know even if they paid via credit card um it's possible they'll send

35:10 you a1099 as well um that won't be a$ 1099 K it'll be something else and um and again it's all just really it's a tool for the to track it's it's you know ultimately you you can generally just hand those to your accountant or tell you know fill out your uh Turbo Tax or whatever but um at the end of the day you don't that doesn't mean to double report that revenue

35:32 or anything like that you know if you get a 1099 K from your payment processor and then a customer also 1099s you for a certain amount um it just basically it comes down to how much revenue you collected um you know and I could see a I could see a corporate client that you do recurring business with just having you know just sending out 1099s to vendors and

35:52 all that stuff and they're just they're just covering their butts you know type stuff um Tim yeah go ahead Yeah Tim ask is there a way to generate 1099s for private contractors through check Cherry and so Tim I'm assuming you mean uh people who work for you to help facilitate the services you provide um and then you pay them that type of thing um and the short answer is no

36:17 we don't have a feature around generating 1099s at the moment um I could absolutely see how that would be helpful um but it's not something we offer um at the moment maybe at some point um it's something we could do um but you know we can show you some of the reporting um that can show you basically kind of how much you paid people um and that would basically just be you know I mt's

36:43 going to hop over right now but basically that would you know help you just fill out the form you know it's pretty straightforward quite frankly um you know you're going to need some information on them but yeah yeah really easy fill out the hard part is uh you know collecting the information from the from the employee ideally when they come on you would um have them fill out like W9 if if

37:08 you're doing 1099 or you know set them up with your payroll provider if you're you know they W2s but yeah s Mo says Turbo Tax does it for you as well so yeah I mean it's something that's um you know done but yeah I mean is there don't we have we have some reporting right for this type of thing where I don't know our demo account has data or not but and the like I said the 1099s are

37:30 really easy to fill out I mean basically it just ask for a you know a social security number and uh and an amount so um so looking real quick at you know some reports you'll commonly need when preparing taxes or that your accountant might ask you or things like that um there's kind of three that are really useful so uh we've got our payment history report which is going to have a list of

37:56 all the payments Within the date range um we've got our expense report so if you do record your expenses in check Cherry um that's going to have a list of all of those and then we've got a profit and loss that um kind of has that all all in one place you know at least for the at least for the high level numbers um so I'm actually going to start with this um because I think that's a real

38:18 useful one to yeah and to be clear the profit and loss will take all the revenue that you collect in check Cherry that you record check payments zel payments card payments whatever it is through the period and then any expenses that you log in there and then give you net income yeah exactly and so with um you know with our demo count here I've got it set to uh to 2024 you can edit that range um

38:44 you know I like our profit margins over here Matt right yeah and typically your income um you know we don't break it down uh very deep but you're just going to have your income you know sales um you know in this case we've got 58k in sales and then your expenses so um those will be broken out by category um and then it's going to have your net income um under the filter we we do have a a

39:12 view that has a little bit more information um this is new this is new and so if you want to break it out a little bit further for instance um you know for our staff payments if you want to see okay well how who did I actually pay um that view is helpful and so that'll break it out um by Mar you know Marino made 300 Alice Cedar had 250 then you can see everything all in one place um you can

39:37 of course click those and and get the more details yeah so Tim I mean basically right there I mean there's your 1099 amounts obviously Check Cherry's not facilitating collecting Social Security numbers and other things um but you know that that would be a good starting Place basically yeah um and then um and so you notice these these categories here job Supply staff payments um

40:05 uncategorized that's going to correspond to when you're setting up expenses um you know obviously as you're creating an expense you can give it a category and um and that that is real useful at the end of the year when you know you need to figure out okay well I can't deduct all of my uh meals and entertainment um um so having it classified separately is helpful because now

40:30 you can you know you can break that out um and just deduct the POR the proportion that you're allowed to categories here one second here Joe's got a question is there a way to book Expose and track those expenses as well those don't have income and so um Jody if if I'm understanding maybe what I think what you're saying is if I if I do a free event is that what you're saying

40:59 yes okay yeah and it's my understanding when you do a free event there um there isn't an expense I guess related to it but I could be wrong I guess if you're hiring somebody right if you pay staff how does that work I'm not quite sure to be honest Matt do you have any thoughts on that yeah so your um so the way check Cherry thinks of it bookings and expenses

41:22 you know uh income is your bookings basically um so whether that whether you made $1,000 or Zar it kind of you know um it doesn't matter and then your expenses are going to be um you know log separately uh you can tie an expense to a booking if you want but you don't need to so for instance if you go to a you know a wedding show and you paid a certain amount of money for

41:46 that or you um you know did say yeah goad Jody do you hire somebody to go to the to the uh Expo I that's you know I think you could basically put in expenses in there but I don't I don't yeah I don't think you can say like hey I'm going to deduct the cost of the event it doesn't work that way right so if you were to say let's say I would this would normally cost somebody

42:14 $11,000 I'm going to do it for free therefore my expense is $1,000 that's I don't believe that's proper logic when it comes to the tax stuff but you might be able to deduct like things like the mileage to the booking or If you hired staff or something like that and the booking would have kind of a zero revenue and negative or and expenses is my guess okay so I I I unmuted

42:40 myself because I figured it would just be easier but um hi everybody I absolutely love Teck Cherry so this is great so I have an an expo coming up uh February 1 and 2nd you know the Expo costs you know so much money to to book and then I'm I'm creating a backdrop and I've got all those you know small expenses I'm going to pay some staff to be there with me so I just wasn't sure

43:02 if there was a way to um put that in instead of a booking and having it be a zero booking I just didn't know if there was a way to track that or how I should track it in check Cherry yeah so that so all of those would be expenses so if you go to sales expense basically you would log that so you would say okay I'm paying you know um I'm paying uh this person X dollar you know $500 and um and

43:34 so um so that's where you would kind of record your expenses um anything and no Revenue right so you're negative $500 on the booking but it but it's not like again you can't can't like you know oh hey this would normally cost my you know some people I guess I've seen people do free events and they want to have it be you know but you could log that as a booking if you wanted but you don't need

43:56 to log that as a booking so just as an expense okay yeah you could do that yeah yeah because I do have I have done free events before and and I have a a fundraiser coming up where I'm going to um if there's a balance owed I I'll write that off but I was just going to put that in as a as a um credit Yeah Yeah so basically what how it works is you know you could um with the free event you could

44:24 pay your staff that would be deductible but any you know your own time your own labor things like that would not be so Y and S more said I would book it as normal then do a 100% discount and then add any expenses and I think that that's yeah got it okay I will do that thank you I'm I'm new this is my first year so this is really help it's a great question Jody I mean thanks thanks for

44:46 joining thanks for the support and the kind words um Tim says I have done free events and I get a letter from the organization for donation amount is that and the donation amount is a right so yeah you know cool I mean I think you know talk to your accountant or professional about this stuff um yeah this is not our wheelhouse quite frankly we have to deal with this because we have to support

45:07 you guys um and so we do see the end of the day though basically it comes down to income minus expenses and so whether you do a free event for a nonprofit or apple or you know any other company you know whether they're nonprofit or anything else um you know if you make money that counts as income if you don't you know you didn't and any expenses that you had um would be deductible

45:34 and I think I think sometimes nonprofits uh kind of take advantage of people a little bit because they imply there's a bit more Advantage than they really is um you know you could show up to my house and do a free event and you would also make zero dollars and and you know you could still deduct any any expenses you had you know um so I generally speaking there's not really an advantage

45:56 to that but you know of course you know ask for your accountant yep and so with all of these expenses um I think we we kind of chatted you know it'd be nice to just kind of look at some things that people do um that are common expenses um so obviously any advertising and marketing um that can be things like Facebook ads um you know maybe you advertise with the chamber things like that um

46:22 automobile expenses generally that's just going to be travel um um some people do other things you know maybe if you have a trailer you buy or things like that you know maybe there's there's something there um Bank fees of course so if if your Bank of America account charges you 15 bucks a year or a month or whatever it is um that would be dues and subscriptions um you know and that can

46:46 include like software subscriptions or memberships to to different your check Cherry subscription is a tax deduction I mean I love that exactly um any equipment you buy you know and you generally that's going to be depreciated over a few years um Insurance uh you know paper other job supplies Legal Professional fees so your accountant that you you know hire to help deal with all this

47:12 um that would be deductible as well um licenses business licenses permits um you know if if you need to get something repaired um that'll count uh again marketing U meals and entertainment uh you know rent or lease if you have a warehouse that you keep your stuff in that that's typically deductible um and staff obviously um certain you know taxes I think the travel is a huge one even

47:41 if you don't charge travel fees it's there's still a tax deduction there so deductions aren't just you know you can't deduct everything that leaves your your checking account your bank account and there's more deductions than than that might not even ever touch your your banking account and as a business owner I mean you're you do pay a lot of taxes but there are a lot of ways you can

48:02 bring that income down um you know just it turns out there's a lot of things that you know that you use or that are partially you know related to the business or things like that and so but thing about it Matt you and I don't get a chance to travel much for business at all I mean we we do software you know but the and our customers they're they're traveling all over yeah if you

48:23 could find you know uh an event to do it you know somewhere you're traveling you know I don't think you can deduct the whole thing but you know maybe there there's a good argument for for at least a portion of that so um and so let's see let's go back to our reports here and so that's our our profit and loss um similarly you can get just kind of a more detailed you know grid type of

48:48 of list of those expenses as well so if I just want to see all my expenses download that to Excel or another spreadsheet you can do that um and then lots of different columns and you know attachment or uh different columns and things like that you can customize it with as well um you can filter based on all types of things as well too so expense report really useful this time of year

49:11 and then payment history report uh useful as well if you do want to break things out a little bit more um and again you know under filter we have lots of options for kind of narrowing it down if you just want to see your credit card payments for some reason or PayPal or things like that that can be useful uh you can also change the columns so if you're using chck cherry payments

49:34 you know we know the processing fees on those transactions and so that's a great column to enable to uh you know if you're accountant or something wants to see that you can see all the processing fees and what that came to um to make sure you did about that um jod has a question does every expense have to be assigned to a booking and the short answer is no um because

49:59 there are expenses that our customers have that are not related to bookings for example your check Cherry subscription website hosting legal fees accounting fees that type of thing so nope yeah and so with that that payment history again that that's going to be that's going to have all the details of of every payment that you received and how you received it so um you know

50:21 so if your accountant does want that that very detailed breakdown of of you know of everything um that payment history report is going to be a a real useful one and then one last report that's um will helpful at the end of the year as well so under the booking details report um you know the payment is is kind of based on when the payment happens and your booking booking report

50:46 is going to be based on when the booking happens so if we review that one um you know that's going to have all kinds of information about your bookings and it's useful for lots of things um but one thing it's really useful for is calculating your your uh travel distance so um there are there is a billable distance and a total distance in that and so the billable you know if

51:11 you're doing things like um first 20 miles fore something like that um that's kind of what the difference is total will include the total miles billable is just how many they were built for um and once you turn that on you can see how many uh miles you know Drive miles were between each location um theoretically for you know if you're really going to do it properly you are supposed

51:33 to have a log where you log your starting location your ending location and all that um but you know practically speaking this just knowing those numbers is enough for most uh for most people to report that and Matt if let's say somebody wants to give their accountant access to check Cherry during the tax season what should they do couple options um you can always just download

51:56 the reports of course uh you know and send that to them that'll be a spreadsheet then they don't need to figure out how to how to do anything um so that is one option um but you can also create them an account as well so under manage user account um you can add a new user and since the accountant is going to see all of your numbers um I mean that's kind of why they're there um you would

52:20 you would give them an admin account so that they have access to all of all of the yep Cal asks can we have the distance in kilometers so back to the reporting you were just saying so when you set up um so under manage business settings um we kind of talked about the tax setting earlier um travel is uh something you want to take a look at too so travel is where you're going to set up your travel

52:49 zones and that's of course useful for you know saying hey I'm going to charge a dollar a mile Etc um but what you can also do with that is just set up a free travel zone and the reason being um we don't require an address when you sign up for Chet Cherry so we don't necessarily know where you're coming from um so but by creating a travel zone that makes it so that we can calculate

53:12 the the travel distance yeah where it's at he he asked about uh can we get the distance in kilometers you know this mileage so when you're setting that travel zone up you can set your preference whether you want it uh kilometers or miles and so that's how we're going to calculate it based on that travel zone so if you've got a free travel um you know no limit no fees Etc what

53:37 that's going to do is that's going to calculate travel on all of your bookings and if you send it to colomet then the report will reflect that as well um if you've been collecting it in Miles um you know we don't necessarily have that data you could export it to excel easy enough I suppose do some ma math but as always chat with us if you need help on something we can help

53:59 you and so let's see history experence pnl and so yeah so I think those are the main main reports to look at um you know at the end of the year um you know if you find yourself coming back to certain reports as well you can also um save those so when you save a report um you give it a name and then it's going to show up under your saage reports so if you find yourself constantly coming back to the

54:30 travel report and don't want to have to you know turn on those columns um it's definitely we're saving it as a as a save Report with just the information uh customized for you as well well we got about eight minutes left you want to do a Q&A to maybe people have some more questions take a quick look at oure our yes hey Cynthia how are you hey fine was he G me to say something

54:56 so let's see yeah so the only other things we were going to mention um payments to independent contractors so that is something to keep in mind um just kind of want to call that out so if you have uh independent contractors you know staff helping you out with events um if you did more than $600 with them you are supposed to send them at $10.99 in EC so that's something and

55:24 really easy to fill out it's just but you do need their um their social security number and that is also due January 31st so now is the time to get on that so that you can um get that sent out to them and um then we kind of talked about the donated services but that was something I wanted to make sure we covered and basically it it all kind of boils down to your income minus your expenses so

55:46 uh regardless of when you earned you know whatever money you received minus whatever expenses you have that's kind of how it's going to basically end up so so with that I think that's all he had so Cynthia it's you go ahead hey um sorry I came in late but I wanted to find out um because I have not logged anything into Tech Cherry when this was implemented because I was still using another

56:13 program so and you may have already said it so I don't know but what I think you said an email or something's going to come to us a$ 1099 from CCH Terry and if that is the case then I just give it to my accountant like I've always done with other things and because this already have all my expenses and things in there so I didn't want to have to double you know inputting things in chck

56:41 Cherry when it's already in somewhere else so how does that work I'll get something from you guys um if you're using check Cherry payments for the payment processing then anything that went through that you'll get a 1099 K form for and so you'll give that to your accountant um you'll also get one for you know if you have like Beno enabled um you know if if you don't use Chet Cherry payments

57:04 if you square something like that no I strictly use CH Cherry yeah then you would get um you might get you know you might get multiple 1099s and those are all due by uh January 31st so um so generally you just kind of want to wait until after that to get everything you're going to get and then give that to your accountant and um yeah one last question um and don't bite my head

57:28 off for those that are in here but I still use um depends on who it is because some attendants they get paid under the table if y'all know but I did tell them I'm I'm going to have to change things I know ca cash app has changed things yep um so for those people that I have in the past been paying through cash app I'll still write it off as an expense when I do my other

57:56 uh things but now with the 1099 K coming in um through cash app you were saying that I need to give them a1099 NC so yeah so so you might get a report you know if if people are paying you via cash app then they might send you something saying how much no I'm paying them okay but if you're sending out money if you sent um if you paid them over $600 right and supposed to send them

58:28 um a 1099 NEC reporting that income um and that basically that with the 1099s basically it's it's kind of reporting to the government I mean it's so they can kind of track track the kind of like the sender of money yeah is tattling on the person receiving money that hey I actually did send this money and that was the whole purpose of that's why that is yeah through cash app so they can try

58:54 to keep some of that money but now that cash app is doing to 1099 K they'll get one from cash app if you're sending them over six over I guess this year what you say it was $2,500 this year they'll get it if it's over no so um so what I read well no you're right over $2500 is when they'll get in 2024 in or whatever in 20 maybe it's 2025 I don't know over 2500 in 2024 look it up I mean please

59:22 don't take everything we say as tax I'm not just I came in late but so they're going to get something from from from cash app or am if they're over the threshold cash app will send them something and you could look up 99 thresholds for 2024 um and kind of see what they have um but my understanding you're still when I've been doing my taxes I oh I'm sorry but my understanding is you're still

59:49 even if they're going to get something from cash app my understanding is you're still supposed to send them at 1099 um um and that's basically so you know if the government ever audits you and says hey where you know did you really send this spend this money um this is kind of your like evidence like yep I you know I reported it that makes sense that's kind of you yeah yeah that

1:00:10 makes sense because I always put it on my taxes as an expense so I guess you're right so they can say hey was this really an expense or did you just give them some money I get it okay and that's where the 1099 NE those in it's spit yeah and I just did a quick Google search it looks like 2024 the threshold is $5,000 so if you've paid $5,000 via cash app they'll get one from cash app

1:00:37 but regardless you should be sending one if you pay over $600 U that's your responsibility so s more says does the booking or U utilization report show individual items packages for example I may rent a bounce house and a slide next time I rent a bounce house and a bounce house with a slide next time I rent a bounce house and a water slide I need to see the number of times and income from

1:01:02 only the bounce houses balance house is equal 100 the report would say balance house is rened three times total income 300 bucks so there's a lot there I I don't let's see what we got yeah a couple things we got here uh you may want to check out the most frequently booked report um that will have a a breakdown of of Revenue by package um so for instance we've got a 4 hour

1:01:26 package a three-hour silver and that will show how much each of those packages generated and you can customize that by date range and things like that that's probably going to be um be the easiest way to see that data um if not you know maybe in the bookings report you can do that as well so if you want to if you want to filter by things like package um you know three-hour package stuff like

1:01:52 that um that that would let you do that as well um that that's probably your best bet if if you do need help maybe uh you know maybe chat with us we can we can uh help as well too and Jody has one I guess Alex has something go for it Alex yeah is is there gonna be a way in the future um for expenses I just kind of get a general idea not for tax purposes but my for my own you know records how

1:02:18 much I'm playing employees so that way I can see my profit on that are we ever going to have a a point where we can you know kind of with packages when we assign an employee I have some employees that are flat rates so that way when we sign it to them flat rate expense or have employees that are paid by the hour where we can put their rate of what they pay you know what we pay them and then

1:02:39 the it goes off the hours of the package to get an idea so that way it's it's it's automatic because I mean I do probably close to about 200 events a year in three or four different employees on each one so like doing it manually every time it just so much that it would be cool if it would be like automated or some way that we can integrate this with like an API or zappia or something like that

1:03:00 so that way it's automated so at the end of the year I can go okay yeah I have this huge number of what my profit is but then when I look at spences go man my payroll was really high on this but these packages have a higher price point and I can see like what the package is for and then also how much I'm paying in in overhead to to make Better Business decisions thank you guys

1:03:23 I think it'd be cool if we offered some payroll features at some point in future um it's uh more complicated I think than one would imagine um on the surface um somebody El mentioned the idea of like 1099s being sent through Check Cherry all that stuff so we don't know exactly how that looks in terms of if we roll that our own or integrate with somebody or whatever that looks like totally

1:03:45 get it when it comes to doing 200 events and three people and calculated and all and all the data is in check CH a lot of the data is in check CH and we could make your life easier so it's great feedback um I think it'd be awesome I don't know Matt you want to add anything um no I think that's uh yeah I think you're right like um I think it totally you know fits within the scope of

1:04:07 cck cherry and making that even um I the biggest problem we we've I think had with is just kind of there is a lot of variation in in how people pay and like different you know different rates for different packages or if this package they do one thing and and with an add-on something else just kind of figing how to do in a way that's um not insanely complicated um is kind of the goal

1:04:33 but yeah I I would love to to and you know Alex says you know I mean one of our challenges is prioritizing kind of what to work on next and all that stuff and the balance so that that's a good uh segue J so so yeahh what's what does somebody want to do if uh yeah so and one of the one of the ways that is most helpful in prioritizing what we do this year or each year is our annual survey

1:04:56 and so just put up a banner inside the app you'll see there with the green button to take the survey it's short only takes a few minutes um we've modified the first question we used to ask like what was the what's the one thing that we can do uh to make your life better but now we say you know go ahead and give us your list and rank rank them on a scale of 1 to 10 um it's really helpful

1:05:16 for us um to see when when a lot of people want something similar it's a good signal uh to kind of prioritize in that area and kind of really uh dive in and invest our resources um on that side so please take the survey um everyone we'll also send out an email um we love your feedback and we appreciate your support um and Jody um I I'll get to you on chat I suppose um you know with this uh

1:05:42 question here but because we're we're at 7:03 I think we'll we'll sign off here but please take that survey um and let us know you know we want to know kind of about your challenges and how we can help you guys I mean that's the more we can understand that and do a better job the more value we provide it just makes our business stronger so we really appreciate the feedback

1:06:00 thanks for coming to the webinar and Matt great job I appreciate it thank you so much for doing the slides yeah thank you guys bye Cynthia bye bye bye everyone thanks for coming bye Jo