Bookkeeping For Your Small Business – Part 1

Published on May 15, 2013 by

Today is the first post in a series about bookkeeping for your small business.  This post will describe a few different reasons why bookkeeping is important for your business.  Additional posts will follow in the series having to do with what kind of records to keep and tips for you to be more successful in your bookkeeping.   I hope that you find this information beneficial to you and your business.

 

One of the first questions you may have is “Do I have a small business?”  The definition of a “small business” is vague and most people have their own ideas on what it includes.  For this article, we are going to include many businesses types and sizes.  For example: restaurants, photographers, hairdressers, convenience stores, auto sales & repair, small shops (such as a bakery, delicatessen, bookstore, etc.), rental property, construction company, multi-level marketing, a business run from your home, small-scale manufacturing, online businesses (such as web design, programming, online sales, consultation, Ebay or Etsy type selling, etc.), and many more.

 

Bookkeeping is keeping and maintaining financial records.  When running a small business, it is important to keep up with your bookkeeping for multiple reasons.

  1. Knowing what money is coming in and where it is going helps you figure out where you could work on trimming expenses to make your business more profitable or what areas you need to invest in your business to increase profitability.
  2. Keeping an updated record of finances for your business will show you if your business is growing, depreciating, or staying in the same place.  You will then be able to assess where you stand and make a detailed plan for the growth of your business.
  3. You will be able to make management decisions better based on your financial information.  You will be able to see if you are in need of extra employees and can afford to hire someone.  You will also be able to see if you have employee expenses that are not needed.
  4. If you will be applying for a loan, financial statements will be easily prepared and make the loan process smoother.
  5. When it comes time to have your taxes prepared you have organized yearly information to give to your CPA which makes it easier and faster.

IRS acceptance of income tax returns

Published on February 6, 2013 by

Many people have been asking if the IRS is accepting tax returns at this time. The IRS has had to reprogram its computers and forms to reflect the late changes that were made in January.

The IRS started accepting a portion of returns starting Jan. 30.  Certain taxpayers, including those claiming residential energy credits, depreciation of property or general business credits will have to wait until late February or March to send in their returns since their forms require more extensive re-programming of current computer systems.

Check with your tax preparer for up to date information on the IRS’s status of accepting all income tax returns.

Tax deadline

Published on March 23, 2012 by

Just a reminder that personal taxes and 1065 business taxes are due on April 17th this year.  That means you have 3 1/2 weeks left to get your taxes done.  You may also request an extension to file your tax return.

New Facebook Page

Published on March 20, 2012 by

Like our blog?  Come and visit our new Facebook page.   We do periodic short updates that don’t make it onto our blog page.

One more month of 2011 tax season

Published on March 16, 2012 by

Well, yesterday was the corporate tax filing deadline.  We’ve had a busy week getting all of those done and filing extensions for clients that weren’t ready yet.  Now it’s time to look forward to the next few weeks.  We will be busy preparing personal returns and other business returns.  Remember to get your taxes filed (or request an extension) by the 17th of April.  Yes, that’s right, you have two extra days to file this year!

Corporation Tax Return Deadline and Extensions

Published on February 28, 2012 by

Do you own a corporation?  The deadline to file your return is Thursday March 15th.  If you don’t think that you will have all your corporate tax information ready by then, remember to request an extension.  That extension will allow you to file your corporate taxes by Sept 15th instead.  Keep in mind that to have an accurate personal income tax return, you will need your business information to be finished.

Checking on your tax refund

Published on February 17, 2012 by

Many people have been asking about their tax refund.  In previous years, the IRS would take about 2 weeks to process their e-file refunds.  This year though, it is taking closer to 4 weeks.  Their website is also experiencing technical difficulties at this time.  If you go on their site to the “Where’s My Refund” part of the page, it will ask you to enter your information but not gtive you a deposit date.  It is very frustrating to people who are waiting for their refund, but please be patient with the IRS.  Your refund will come, it just may take an extra week or two that previously planned.

Have you gotten your tax refund yet?

Published on February 10, 2012 by

Once you have your taxes finished and filed, the next thing is waiting for your refund to come.  Many people ask how long it will take to receive their refund and how they can check on that.

How long will your refund take?

If you decided to e-file your return and have your refund direct deposited, the IRS has stated that it takes between 2 or 3 weeks for the money to be deposited in your account.  If you e-filed and opted to receive a check, your check will be sent out after three weeks.  If you decided to send in a paper copy of your return, it will take between 6 and 8 weeks for them to process your return and then send out the check.

How can you check on your refund?

The easiest way to check on your refund is to visit the IRS website.  They will have updated information about your refund 4 days after your e-filed return has been accepted, or 4 weeks after you have mailed in your return.  On their homepage, there is a colored link that says “Where’s my refund?”.   You will need the following information to check on your refund:  your social security number, your filing status, and the exact amount of your refund.  If you have filed your return jointly, then you will need the social security number of the first person listed.

You may also call the IRS to check on your refund.  There is a refund hotline at: 800–829–1954  If calling the IRS you will also need your social security number, your filing status, and the exact amount of your refund.

 

Tax documents

Published on January 20, 2012 by

It’s that time of year again.  We’ve all been getting tax statements in the mail for the past few weeks.  Most of your tax documents should be received by January 31st.  Then it’s time to get your taxes done.  Remember to bring all information to your tax preparer so they can enter the most accurate information for you.  We all know about the W-2’s, mortgage interest statements, interest received from bank accounts, income from stock sales, and school grant information.  It’s also important to bring in any information about charitable contributions, work expenses that have not been reimbursed, rental income/expenses, child care expenses, IRA contributions, business related expenses and moving expenses.

Direct Deposit

Published on January 19, 2012 by

When filing your tax return, the fastest way to receive your tax refund is to electronically file your return and choose to direct deposit your refund.  Now you can deposit your refund into up to 3 different checking or savings accouts.  That makes it easy to specify what amount you would like to save for future use.  If you are having a tax professional prepare your return, remember to bring your bank routing number and account number.