I would like to
conclude this article with a mention of the Accounting and Taxation
needs of your business.
Accounting / Bookkeeping
The business entity concept provides that the accounting for a business
or organization be kept separate from the
personal affairs of its owner, or from any other business or
organization.
This means that the owner of a business should not place any personal
assets on the business balance sheet.
The balance sheet of the business must reflect the financial position of
the business alone. Accordingly, two of the
first things you should do is;
- Open a separate bank (checking or savings) account for the business.
- Setup an accounting program for your business. Whether you do it
yourself, buy accounting software, or hire an outside source to take
care of the accounting and taxation for you.
Accounting and Tax Software
Many small businesses, especially home-based businesses, do their own
accounting and bookkeeping.
Small businesses are also now exploring the idea of using a tax software
program to prepare their returns.
Software packages offer convenience, good prices (in most cases) and
organization, but can they really replace the personal touch of an
accountant or CPA?
The use of tax software is a personal decision for each business to
make.
=>Accounting Software For Small Business - Every small business needs to
know where the money went and is going.
Your accounting system may be as simple as using a spreadsheet (Excel,
Lotus, etc.), or you may need to purchase accounting software.
There are many accounting programs on the market these days, from the
very inexpensive and simple to very expensive and complex.
These top selling accounting software programs simplify your small
business accounting tasks, and provide all the reports and tools you
need to effectively use your financial data.
- Peachtree: Peachtree has many products and software solutions, the
also offer a trial download, which allows you
to test drive the product.
As a CPA I have used Peachtree and can attest to it quality.
- QuickBooks: QuickBooks is another popular full featured accounting and
payroll program designed for small businesses - or, I should say, a
small business accounting software series. QuickBooks is available many
versions.
I have used QuickBooks for years, both personally and professionally.
There may be accounting software unique to your industry, which would be
more appropriate for your business.
=>Tax Preparation: many accounting software series and packages also
come with a solutions to your taxes.
What ever you do in regards to taxes, the important thing is to keep
records.
According to the IRS you are supposed to have records for any
deductions.
More important... keeping accurate records will make the accounting and
tax preparation process much easier and will
save you lots of time and money.
If you decide to have your taxes prepared for you, keeping organized
records will save you money.
The less organized you are, the more questions the tax preparer will
have for you.
Also the the more time spent preparing your return, generally, means
that the cost goes up.
Here's wishing the Best of Business to you!
That concludes this article, STARTING A BUSINESS.
Related Articles:
Starting a Business 1
Starting a Business 2
Starting a Business 3
This article on STARTING A BUSINESS? is not
"professionally" advising you on business matters, or business
agreements. If you have any concerns in regards to your business, I
would advise consulting an attorney.
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About the Author
This article was written by Michael Herman, a CPA. Michael publishes the
Working At Home Gazette -
A Powerful Tool for those who already are, or Planning to, Working at
Home
