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