Sometimes financial problems can be solved relatively easily. I was struggling to make it from week to week until I learned that some financial organization could change my spending habits. If you can organize your personal finances, you will see exactly where all of your hard earned money goes. You will be shocked to see how much the morning coffee and donuts cost you each month. This blog will provide you with information that can help you get your personal finances organized so that you don't have to continue struggling from paycheck to paycheck throughout each and every month this year.
As a new small business owner, it is important to remember that when it comes to your taxes, the burden of proof is on you. It is your job to keep accurate records of all your transactions and expenses, and back up these records with invoices and receipts. If you are just starting up a small business, you need to make sure that you establish systems that allow you to keep track of all your important tax documents, because if the IRS reviews your taxes, it is up to you to prove that everything you submitted is accurate.
Keep Your Business And Personal Accounts Separate
The first thing you need to do is keep your business and personal accounts separate. This will help you keep accurate track of everything that comes in and out of your business.
If you mix your business and personal accounts, you just increase the amount of work that you have to do. You'll have to more closely track what is for your business and what is for your personal life. You can save yourself from having to do this by simply setting up a separate banking account and credit card accounts for your business and personal life.
Save All Of Your Statements
You need to keep track of all of your financial statements. If you have a bank, use a credit card or use an online-payment system to make and receive business payments, you need to keep track of all your statements and make sure that your financial statements include all relevant information.
Your financial statements should include the payees' name, the date the payment took place, and the amount paid or received. This will help you keep track of the payments and expenses. You should scan all of your financial statements so that you have back-ups in case something happens to the originals.
Save & Organize All Of Your Receipts
You also need to save all of your receipts. Luckily, technology makes it easier to keep track of all of your receipts. After you purchase anything for your business, be sure to take a picture of the receipt or invoice or scan it. Then, you can use one of the many receipt tracking applications on the market to keep all of your receipts organized. These applications even allow you to organize your receipts by category as well.
When you are doing your taxes, you will need to look over your financial statements and receipts to determine what you can write off on your taxes. You will also need to keep copies of all evidence behind your write-offs because if the IRS ever reviews your taxes, you would be required to provide them with this evidence.
Invest In Accounting Software
Finally, as a new small business owner, make sure you add some room in your budget to either invest in some account software and training, or to hire an accountant to keep your books.
A high-quality accounting program or company like James Gioia & Company PC will help you keep track of your expenses on a daily basis. It will also make tax season a lot easier for you; you will already know your expenses, profits and losses. You will not have to put as much work into figuring everything out when you have up-to-date accounting records.
As a new small business owner, remember that when it comes to taxes, it is up to you to prove everything that you write down. Your employer is not going to provide you with the paperwork you need; you are the boss now, and it is up to you to keep accurate records and to have proof of everything that you claim on your taxes.Share