Cash is King
Keep separate bank accounts for your business. Don’t mix personal and business transactions in one bank account. Deposit income promptly in a business bank account. If you need cash for small daily expenses, use petty cash. Avoid using cash to pay for bills or inventory. Pay with check or credit card whenever possible so that you have a record of the purchase. It is too easy to lose receipts and forget about expenses paid with hard cash.
Accurate bookkeeping is necessary in order to compile clear and precise reports as well as determine how your business is doing. In that light, be sure to research your bookkeeping options thoroughly to ensure optimal maintenance of your accounts.
One route requires tracking all of your expenses and meticulously documenting them in a spreadsheet. Then, it must be deciphered and interpreted to produce clear data and exact reports. For many business owners, this option simply asks too much of them, as they have limited time that should be spent on moving their business forward, rather than on tedious accounting work. A second route may be using accounting software like Quickbooks. And another option is to simply outsource your bookkeeping and accounting. For those that already have too much on their plate, this is a valid consideration.
Potential Tax Issues
There are many tax issues to be aware of and try to avoid. There is a lot of talk about identity theft and tax scams preying on the elderly and handicapped. Also there are the Obamacare penalties, new items like the same-sex tax filing and gains from fantasy sports, and continuing IRS monitoring and crackdown on international money. Please come and see me for discussion on all of these topics and any other accounting, business valuation and audit or review needs.
David A. Snyder CPA, PLLC
325 Montezuma Street, Prescott, AZ 86303
(928)445-0104 Ext. 9
Fax (928) 717-1076