If you are a brand new home-based entrepreneur or seasoned small business owner, managing the accounting system and preparing your tax returns is essential to the long term success of your business. You must have an immaculate tax planning and preparation in the first place. It can also save you money in the long run. There are a few key steps to ensure a proper accounting system.
Every self-employed person has to start their business with a plan on how to keep their receipts and records organized. Hope Van Leeuwen, MBA and Master Seeds in Apples, states "In my role as an adviser to the development of small businesses, it is very important that I communicate the need for a good system of bookkeeping to business start-ups my coach.
I refer to this start-up clients to CPA for their expertise in accounting system setup, training, maintenance, and taxes. " If you own a small business is quite simple that many professionals can create a spreadsheet using Microsoft Excel or Google Docs to manage their files.
You will need to make sure that you keep all receipts as a backup. If your business is a bit bigger, then using a software program is the next logical step. The files you create can be supported and given to your accountant so that they can have full access to your books to aid in the financial statements and tax preparation.
Choosing a Professional Tax Preparer:
It is important to note that not all books guards, tax preparers, accountants and CPAs have the educational background and the same. The taxpayer is ultimately responsible for the accuracy of their tax returns. Many tax preparers are not qualified to help entrepreneurs in the legislation that are more complex relating to the business tax refund, buying and selling assets, self-employment tax, depreciation, and investment. If you have a problem with the tax return, remember that only registered agents, attorneys, and CPAs have limited rights to represent taxpayers before the IRS.