| If you are in business, then guess what - you are | | | | and you are prepared to be questioned if such |
| either an accountant by default or you need to | | | | questions arise. The practice of over filing |
| hire one. Why? People ask that question while | | | | expenses with the federal government and |
| letting the year roll by until taxes come due. Oh | | | | fabrication of records is a federal offense and can |
| no! Why do I have penalties? | | | | carry legal ramifications beyond penalties and fines. |
| Simple, you are not an accountant and you should | | | | In fact you can be imprisoned for fabrication of |
| have hired on. So the first rule of business | | | | any information regarding your taxes. Going to |
| accounting is to hire one if you are not one. | | | | prison for bad record keeping? Now that is a bad |
| Second rule of business accounting is to hire an | | | | way to end a fiscal year. |
| accountant to review your accounting before filing | | | | Keeping track of money coming in is as much of |
| taxes. | | | | an issue as keeping track of money going out. |
| Most individuals starting a business are unaware | | | | Simple bank statement preservation can go a long |
| that the filing deadlines for corporations and small | | | | way to keeping things on track for your new |
| businesses are different from personal filings. | | | | business. Keep them in a "safe" place preferably a |
| While personal income tax returns are due in April. | | | | fire proof safe if possible. Remember all the |
| Corporate and business tax returns are due in | | | | responsibility rests squarely on your shoulders no |
| March. His often leads to many late fees and so | | | | on else's. The federal government does not care |
| forth associated with late filing penalties. | | | | if your building burns to the ground before the tax |
| Keeping good records is another concern for | | | | year is over. You are still responsible for your |
| most new business owners starting out. Many | | | | taxes and the ramifications for not filing can be |
| new business owners do not understand the tax | | | | expensive ones. |
| code and do not understand what can be written | | | | Good accounting software should be your first |
| off as an expense and what cannot be written | | | | stop if you plan to keep you own accounting |
| off as an expense. These small errors will also | | | | records. There are several packages out there |
| lead to penalties and additional fees associated | | | | some are expensive and some a cheap. Pick one |
| with your filings. | | | | that meets your needs best not the biggest just |
| Make sure to keep all receipts or online order | | | | because it appears to be the most expensive or |
| forms for later reference and keep them | | | | the one with the most features. Remember, you |
| organized. There is nothing worse than the end of | | | | have to learn how it works in order to keep good |
| the year sorting festival. Receipts get lost and | | | | records. So keep in mind your own personal |
| records can be incomplete if not taken seriously. | | | | limitations when purchasing accounting software. |
| Do under estimate the power of organization and | | | | Finally, if you accept cash then document the |
| the process of organizing your records. Keep | | | | transaction with a receipt. Never take cash |
| them tight! | | | | without a receipt and always claim your cash |
| Giving to charity must also be carefully monitored | | | | receipts at the end of the year. After all, the |
| and accounted for by both parties. The | | | | greatest Mafia bosses and organized criminals of |
| philanthropist and the charity should both get a | | | | our time were not prosecuted for murder or the |
| receipt and have good records. If you give time | | | | other hideous crimes they were in charge of. |
| then keep good logs of your time and have the | | | | They were imprisoned for not filing taxes on cash |
| charity you donate to accept and sign for your | | | | receipts. |
| log. You need a receipt! | | | | A good accountant can help you to avoid |
| Warning! Take great care not to fabricate or | | | | penalties and over taxation. Hire one they are |
| provide false deduction information. If you claim a | | | | worth every penny in the long run. |
| deduction make sure your records are in order | | | | |