subject: Managing Your Bookkeeping And Taxes [print this page] As a business owner for over 20 years, I have seen many people struggle with bookkeeping and taxes. For many, just the thought of doing their own books scares people. Sure, it can be daunting and there is an element of screwing up which could cause the IRS to come knocking on your door for "clarification of certain deductions." Unless you live someplace with taxes are not collected or an issue, you have to keep accurate track of your income and expenses to keep "the service" away from your door. Even then, there is no guarantee. However, accurate bookkeeping and clean records can make a huge difference.
Unless you are in the business of finical record keeping or bookkeeping, one of the best moves you can do is delegate. For that matter, delegation is a critical aspect to any business. After all, you cannot and should not be expected to know everything. It is impossible to master everything about your business. So delegate the things of which you are marginal and focus on the things in which you are exceptional. Bookkeeping is one area where delegation is easy.
There are many accountants and bookkeepers across the country who would be eager to assist you. I highly recommend hiring someone. But take your time and do your homework. You may want to consider finding someone who specializes in servicing your industry. Having knowledge of your industry may give them an advantage in helping you. For they may know the latest areas the service is auditing, or how to properly allocate expenses according to the IRS rules specific to your industry.
If you are like most Americans and not in an industry that is highly specialized, then look for a bookkeeper and accountant who matches your personality OK, I admit, some accountants are not the life of the party and you may not find yourself hanging out with them on a social basis. In which case, do the right thing and hire someone smart, organized and well within your budget. There is no reason in today's marketplace to pay an arm and a leg for this service. It is possible to keep the cost below $100 a month for bookkeeping AND tax preparation. New computer programs and of course the internet make this possible.
So go out and take a look around. Don't limit yourself to driving distance either. There are plenty of options on-line. Personally, my bookkeeper and tax preparer works through the mail, on-line and over the phone with me. For under $80 a month I get bookkeeping and tax preparation. How? They sent me 12 pre-paid envelopes after I registered. Once per month I complete their little questionnaire and send in my receipts. They scan, according to IRS regulations, my receipts and enter the information into Quickbooks. Once a month I get a Profit and Loss report and at the end of the year my taxes are completed. They use qualified bookkeepers and CPA's so I don't have to worry about competency. Click here to learn more about their service: Taxelope.
Good luck and remember, do what you know - delegate the rest.
