There are no shortcuts to success. But, following these guidelines will help boost your company's…
It's no surprise that owning a business takes a lot of work and you can often hear successful small business owners say, "it's not my job, it's who I am."
Basically, smart, successful business owners know what it takes to survive in the wild nature of the business world. Dedication and perseverance are common traits, but many business owners know that preparation is a key part of the strategy.
Be a Successful Small Business Owner
Having a successful business does not necessarily happen overnight. Most business owners spend countless hours at their business and know when the business day ends, their accounting hours begin. Keeping your company in business does not end at the closing hour, but takes a commitment to accurate record keeping and financial planning.
Here are 4 time tested tips provided by experienced small business accountants:
1. Treat Your Business Like a Business
Remember if you make money providing a good or service, then you have a business. If you have received payment exceeding $400 in a tax year, then you may be subject to taxation. It is important to know what qualifies as a personal business and what does not.
- Know what is and what is not deductible
- Use a home office to your advantage (area must be exclusively for business purposes)
- Use portion of home utilities
- Cost of upgrades/renovation to office area
- Auto expenses
2. Pay Quarterly Estimated Taxes
Unless your business is exempt (owing taxes totaling less than $1,000 for self employed or $500 for corporations), then you will need to prepare for paying quarterly estimated taxes. Reporting to the IRS on time with accurate payments is the best way to ensure a positive relationship with the IRS.
3. Don't Mix Business and Personal Finances
Use separate bank and credit accounts for personal and business finances. This will help you keep business records accurate, and easily accessible if you are audited by the IRS.
4. Organization Matters
Keeping your finances and records in manageable order will help during tax time.
- Create an accurate filing system
- Schedule time each month to review expenses, profit, etc.
- Accurate record keeping
- Files on employees/contractors
- Know the difference between independent contractors and employees
- Keep accurate payroll taxes
- Files on employees/contractors
Poor organization leads to trouble. Whether or not you are audited by the IRS, keeping inaccurate records can lead to financial ruin. Don't let a business that could survive falter due to mismanagement.
Hire a Small Business Accounting Professional
Owning a business requires so much attention and focus, that it can be easy to make simple errors on your taxes. Working with an experienced Raleigh small business accountant is the best way to ensure your finances are in order. A professional accountant can help you find the right deductions and help guide you through the tax paying process.
If you would like assistance from a small business accountant with more than 28 years experience, then contact C.E. Thorn, CPA, PLLC by completing the online contact form or by calling 919-420-0092.
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