One of the most important and most overlooked components of starting a business is bookkeeping. Often times the owner will start off great, but as times goes by they will get tied up with the other demanding challenges of owning a business. Sometimes they never really start at all and intend to tackle it once...
Beginning on Jan. 1, 2014, the standard mileage rates will be: 56 cents per mile for business miles driven 23.5 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organization An annual study is conducted to determine the standard mileage rate for businesses. The study examines...
Each year the IRS mails millions of notices. What should you do if you receive a notice from the IRS? Don’t ignore it! IRS notices typically pinpoint specific issue about your tax return or tax account. The letter may indicate the IRS has corrected an error on your tax return or it may ask you for additional information. Read it...
The tax code includes a variety of taxpayer rights. However, they are scattered and buried though out, making it difficult for taxpayers to know and understand their rights. To help alleviate this, the IRS adopted the Taxpayer Bill of Rights. The Taxpayer Bill of rights centralizes these rights into 10 broad categories. This move makes them...
Taxes and your budget. When creating a budget for your small business make sure you set your budget to include not only wages that must be paid, but the payroll taxes that also must be paid to federal and state agencies.
Classification of employees Make sure you properly classify your workers. This will ensure you are paying each employee under the correct method and legally.
Use a computer. As simple as this may sound, it’s surprising how many small businesses only rely on paper. Computer software is available that makes it easy to track income & expenses, prepare tax documents & summarize financials. Make sure your outside bookkeeping agency uses a computer.
Leave an audit trail. Your system is more effective if you can easily & quickly retrace your financial activities (1 year minimum). Steps: • Keep your checks/invoices in numerical order • do not skip check/invoice numbers • keep your business funds separate from personal funds
Get a bank statement with a month-end cutoff. In order to make reconciling your statement & expense tracking easier, synchronize your bank statement with your other monthly records.
Handle & review checks carefully. Never go on autopilot when writing or discarding checks; treat them like cash. Sign checks in a manner that discourages forgery. Always review canceled checks. And if you have a business with multiple partners, consider using a co-signer for your checks.
Copyright by Apogee Accounting Solutions. All rights reserved. Design and Developed by NIDS
Copyright by Apogee Accounting Solutions. All rights reserved. Design and Developed by NIDS
