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.