Especially in a small business or a startup, you, as the owner, may not have any idea how to cope with bookkeeping. You know that it is crucial to record all the income and expenses properly but cannot afford to have a regular staff to take care of those details.
That is when Master Plan Tax & Bookkeeping of Flower Mound TX can come to your rescue if you are in one of the North Texas communities.
Following are some of the usual bookkeeping mistakes made and suggestions on how to correct them:
1. Let Master Plan set the books up tailored to your particular business niche for you to follow so that you can perhaps be taught to do the preliminary bookkeeping and arrange for the professionals to do your actual tax return, financial statements, and any IRS sales tax and other reports throughout the year while making sure that you don’t miss any filing deadlines.
2. They will be able to catch and correct any errors or omissions in your portion of the records and advise on how to move forward correctly.
3. They will make sure that you document all of your allowable expenses so you can take all of the maximum small business tax deductions.
4. Learn how to record all of your receipts into the proper categories as you tackle that chore preferably on a weekly basis so that it doesn’t get out of hand.
5. Don’t mix business and personal spending. Have a separate business bank account and credit card to give you better records and make it much easier and quicker to enter each item into its category.
6. Be sure to keep those receipts for a period of seven years so that you can back up the deductions on your tax return and avoid any fines if you are ever audited. You may be able to upload pictures of the receipts if you are using accounting software. You have to make sure to record the specific details of each expense.
7. Single-member LLCs and sole proprietors have to make sure that they don’t categorize the payments to themselves as an expense. That will lower the profit and create a false income total that you are obligated to pay tax on.
8. Learn how to read your financial statements that record insights on how your business is really performing, what budget you need to stick to, how to control your cash flow, how to spend and save, how to maximize the tax deductions, and how to make the smart financial decisions that will help your business grow. Also, if needed, they can aid in successfully applying for a bank loan or showing a potential investor detailed information on how the business is actually doing.
We at Master Plan Tax & Bookkeeping are ready to help you with your specific accounting needs in Flower Mound and the surrounding areas. We adapt to what you need and keep you “on the straight and narrow” with your bookkeeping and tax responsibilities. Contact us today!