If you are going to start a new business, then one thing you definitely should think about is - accounting, or rather: who is going to do the accounting. There are two answers: hiring an accountant or be an accountant yourself. Why this accounting subject is so important for your business?
A quick example: most individuals start their business being unaware of simple fact tax filing deadlines for small businesses and corporations are different from personal ones. Personal income tax returns must be filed before the end of April. Corporate and business tax returns, however, are due in March. This often leads to unwanted fees and penalties for late submissions and so forth.
Keeping good records is another important thing and a big concern. Many new business owners do not fully understand the tax code and also what can be written off as expenses and what cannot. Because of that business owners collect additional “financial disappointments”.
Make a strict habit to keep all receipts, online order forms, other proves of financial expenses for later reference. Try to keep records organized. Lost receipts or uncompleted records will become your nightmare when time comes to fill your tax reports. If you claim a deduction at the end of the year make sure you have all records in case being questioned.
Don’t neglect to keep a track on money coming as well. You regular bank statement can serve you as a good simple start in this tracking routine.
Consider starting to use good accounting software – it will help to keep your records organized and easily available.
If accounting appears to be “too heavy for your shoulders” for managing yourself – hire an accountant. This should definitely save you lots of nerves, hustles, save precious time and what’s more important – avoid flows of penalties and over taxation!
http://www.nysscpa.org/ |
Added: Sat Dec 09, 2006 4:52 pm GMT 