Starting a Business - (3 - 3)
In the initial two parts of this article I talked about some of
the steps necessary in starting a business; Licenses and Permits
and the Form of Business Entity.
I would like to conclude this article with a mention of the
Accounting and Taxation needs of your business.
Accounting / Bookkeeping
The business entity concept provides that the accounting for a
business or organization be kept separate from the personal
affairs of its owner, or from any other business or organization.
This means that the owner of a business should not place any
personal assets on the business balance sheet.
The balance sheet of the business must reflect the financial
position of the business alone. Accordingly, two of the first
things you should do is;
- Open a separate bank (checking or savings) account for the
business.
- Setup an accounting program for your business. Whether you do
it yourself, buy accounting software, or hire an outside source
to take care of the accounting and taxation for you.
Accounting and Tax Software
Many small businesses, especially home-based businesses, do
their own accounting and bookkeeping.
Small businesses are also now exploring the idea of using a tax
software program to prepare their returns.
Software packages offer convenience, good prices (in most cases)
and organization, but can they really replace the personal touch
of an accountant or CPA?
The use of tax software is a personal decision for each business
to make.
=>Accounting Software For Small Business - Every small business
needs to know where the money went and is going.
Your accounting system may be as simple as using a spreadsheet
(Excel, Lotus, etc.), or you may need to purchase accounting
software.
There are many accounting programs on the market these days,
from the very inexpensive and simple to very expensive and
complex.
These top selling accounting software programs simplify your
small business accounting tasks, and provide all the reports and
tools you need to effectively use your financial data.
- Peachtree: Peachtree has many products and software solutions,
the also offer a trial download, which allows you to test drive
the product.
As a CPA I have used Peachtree and can attest to it quality.
http://working-at-home-ideas-and-information.com/PeachTree
- QuickBooks: QuickBooks is another popular full featured
accounting and payroll program designed for small businesses -
or, I should say, a small business accounting software
series.QuickBooks is available many versions.
I have used QuickBooks for years, both personally and
professionally.
http://working-at-home-ideas-and-information.com/QuickBooks
There may be accounting software unique to your industry, which
would be more appropriate for your business.
=>Tax Preparation: many accounting software series and packages
also come with a solutions to your taxes.
What ever you do in regards to taxes, the important thing is to
keep records.
According to the IRS you are supposed to have records for any
deductions.
More important... keeping accurate records will make the
accounting and tax preparation process much easier and will save
you lots of time and money.
If you decide to have your taxes prepared for you, keeping
organized records will save you money.
The less organized you are, the more questions the tax preparer
will have for you.
Also the the more time spent preparing your return, generally,
means that the cost goes up.
Here's wishing the Best of Business to you!
That concludes this article, STARTING A BUSINESS. If you missed
any of the preceeding sections, or would like to reread them.
Go to http://working-at-home-ideas-and-information.com/StartABiz
This article on STARTING A BUSINESS? is not "professionally"
advising you on business matters, or business agreements. If you
have any concerns in regards to your business, I would advise
consulting an attorney.