A concession stand is basically a type of booth set up at various events. It supplies patrons with refreshments such as drinks, snacks and even full meals. While someone who owns a concession stand might not be working a typical 9 to 5 workday, it can still be a full-time undertaking. In order to report your earnings to the IRS and pay the taxes you owe, diligently kept financial records are a must.
Set rules for how you plan to run the concession stand. For example, decide on the amount of money a product needs to generate to so that it is worthwhile to keep stocking it.
Choose a system for keeping records. While some business owners still prefer to keep records using pencil and paper, many have switched to using software programs such as Microsoft Access or Excel spreadsheets. If you have only stand, one or two products being sold, and volunteer employees, record-keeping won't be as difficult as if you were following a more complicated business model.
Detail all of the various types of records you need to keep. Like any business, keep track of quarterly expenses and profits. Specific to the concession-stand industry, keep careful track of inventory to ensure you always have the supplies to serve customers. If you have employees, you also need to keep records for them — such as hours, pay and expenses. Well-kept records should be broken into specific categories, allowing an analyst to compare and contrast line items.
Include relevant dates, amounts of money and items in your records. For example, if you have the expense of purchasing uniforms for each employee, include the date of purchase, the vendor, cost and the specific name of each item, such as large polo-style uniform shirt.
Update your records often. Each time you make a purchase, a profit or pay your employees, add this to your records. You might decide to update your profit records on a daily or weekly basis, or even per event. Inventory should be updated at the end of each day the concession stand is in operation. Once you keep records for a certain amount of time, such as three months or a year, you can estimate your profits, expenses and needed inventory items within a given time frame.
Keep proof of all records. For example, when you purchase uniforms, supplies or anything else, keep a receipt as well as a copy of the bank or credit card statement. These records will make it easier to file annual taxes and will be very important should your business get audited by the IRS.