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Mileage – Is it Business or Commute Miles?

Mileage for 2012 is 55.5 cents for each business mile. Do you know the difference between business and commute miles? If you are confused, you’re not alone! First, do you have a home office? If “yes” then any time you leave the house for business reasons, the miles are deductible. If the answer is “no”

How to Organize Your Bookkeeping Records

Paperwork…if we don’t have an efficient system for organizing paperwork, it will overcome us! Although bookkeeping may not be your favorite task, it is a necessary aspect of business. Take control of the never-ending paperwork by using a system that keeps you organized and tax ready. When starting a bookkeeping system, use categories for totaling

Setting Up the Chart of Accounts

Setting up your chart of accounts needs thought and some understanding of what you “need” to know versus what you “want” to know. The IRS has not accepted one form of accounting system over another. The only requirement is that you keep records and have proof available for those records should you be audited. So

How to Get Your Small Business Tax Ready | Final Review

In our last segment we discussed making sure your balance sheet is correct. The seventh and last step in getting your small business tax ready is conducting a final review. Below is a list of areas of review to confirm your numbers are accurate: Review the equity section of the balance sheet. Check to see

How to Get Your Small Business Tax Ready | Balance Sheet

In our last segment we discussed correctly reporting your business assets. The sixth step in getting your small business tax ready is making sure your balance sheet is correct. The balance sheet is a valuable tool in the course of running your business. The balance sheet shows dollar values for what you own,

Balance Sheet Accounting

Too often in business the balance sheet is neglected. The balance sheet is one of three important informational statements for your business. It is a report that will show you the value of your company. The balance sheet has an important function at tax time. Here is a balance sheet review: Balance Sheet

Do You Need a Separate Checking Account for Your Business?

A question that I often receive is, “Do I need a separate checking account for my business?” It is highly recommended to have your business money in a separate account. By setting up a separate bank account, you have established a record of business income and expense that will help at month end

Simple Record Keeping Strategies

Organization is the name of the game. If you don’t have a solid record keeping strategy, you will struggle to be tax ready. Bookkeeping will be a nightmare if you don’t have an effective filing system. Here is some simple record keeping strategies to follow: Record transactions by category: All money received from

Afraid of an Audit? Don’t Forget these Thirteen Deductions!

Don’t mess with the IRS, but take every legal deduction you can! That doesn’t mean you should cheat yourself, in fact tax law states that you are to report all income and all related expenses. In other words, you are required to file an honest tax return and have the paper work to prove

1099, 1096 and W-9 Forms

Have you hired a sole proprietor to provide a service for your company? Did you pay them $600 or more during 2011? If you have answered “yes” to these two questions, you need to send a 1099 to them by January 31, 2012 as well as send a copy to the government agencies