I’m comfy with how we have stuff set up for the IRS. I was referring specifically to how to track stuff in Quicken. I’m setting up the Dave Ramsey budget in Quicken, like we learned in FPU, both to budget in advance and track actual costs for records. I could track my income in two different ways – as the difference between gross sales minus COGS, as you elaborate below, OR I can just log whatever hourly time I put in AND was paid for. The difference would be in the cash flow. For instance, if I go with our current approach of “total sales – COGS”, I would log a huge income two or three times a year for the hogs, even after I subtracted the COGS. But then I would show much smaller earnings in between. On the other hand, if I log my time (which I’ve started to do anyway) and pay myself an hourly wage, then I can show a steadier income but at much lower rates. The year-end totals would be the same but the monthly and weekly cash flow totals would be a lot different under those two scenarios.
I’m thinking to keep things simple and just stick with showing income as it comes in, rather than trying to force a regular hourly payment plan which I may or may not be able to sustain throughout the year. Makes for lumpier cash flow, but I think it’s more realistic. Sort of like Dave’s budgeting setup for folks on commission – you know those sales will come in, but you can’t peg exactly when and for how much, so just allow for that unevenness. But I guess I’d still like to know how other folks handle it in Quicken, when they have uneven earnings.