Bookkeeping is the foundation of any successful business. It doesn't matter if you're an online retailer, a brick-and-mortar store owner, or anything in between. You need it to keep track of your finances, make better decisions about where to allocate your resources, and determine how much profit you want to take home at the end of each day. Read on to learn why you need consistent bookkeeping.
To Get Clear Statements
Small business owners who choose to incorporate their business usually do so to gain the liability and financial protection that comes with forming a separate entity. But this distinction between your company and you (or other shareholders) can be put at risk by certain activities. These activities can constitute what is known as piercing the corporate veil — and opening up owners to risk.
While a number of different types of activities can pierce the corporate veil, several accounting actions or failures are common causes.
If you're a real estate agent, you need to plan for your taxes and know your tax burden. Real estate agents are categorized as self-employed and sole proprietors. They are liable to payroll deductions, but they have the opportunity to maximize tax deductions. Essentially, real estate agents require practical tax planning services to compute their taxes correctly. You should consult tax planning specialists to leverage tax breaks and minimize deductibles. Here are additional reasons why you need tax planning services as a realtor.
If you are looking to start a business and working with a bootstrap budget, you will no doubt be looking for areas where you can cut costs. Doing the accounting function yourself if you have no accounting background is not one of the areas you should consider. Instead, hire a small business accountant and see what an asset the accountant will be to your business.
Here are some top ways a small business accountant can help during this start-up or infancy phase of your business.
As the year starts to wrap up, it is time to make sure you have done all you can to ensure you took care of your taxes this year. You can do many things to help your financial situation in regards to your taxes this year and next with the right planning.
Tip #1: Be Smart About Expenses
First, you will want to examine what tax bracket your small business falls into this year and where you fall within that bracket.