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Paying Small Business Taxes


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Paying Small Business Taxes

A few years ago, I decided to abandon the career path I was on in order to go back to college. While in college for the second time, I pursued a degree in English education. After many months of searching for the perfect teaching position after graduating college, I decided to start a home based business. I’ve been working for myself for the past two years. And, I’ve never looked back. Unfortunately, I struggled with bookkeeping at first. I didn’t know how to pay the quarterly estimated income taxes that were required of me by the federal government. If you’re starting a small business, you should consider hiring an accountant to help you with your taxes. On this blog, you will discover how an accountant can help you survive your first year of operating a small business.

Benefits Of Hiring A Bookkeeper

If you are a small business, then hiring a dedicated bookkeeper can seem like a big expense. But there are many benefits to having someone whose job is exclusively focused on keeping your books in order. Here are some of the biggest value services provided by bookkeeping services. 

Presenting Correct Invoices to Clients

Bookkeepers are there to catch errors in your books before they cause problems. One of these major problems is in presenting incorrect invoices to your clients. For one, this can make your business look unprofessional and may cost you business. The second problem is that incorrect invoices will likely come back to you, costing you and your clients money for the time spent dealing with problems. 

Invoicing Effectively

At the same time, you may need to do follow-up to ensure that all invoices are paid in a timely fashion. By having a bookkeeper in place, you can make sure that all invoices are followed up in a consistent way. For instance, your bookkeeper may do a follow-up call after a set number of days and resend the bill or escalate the charges with late fees after another amount of time has passed. Consistency is key. 

Avoiding Late Fees

You'll also have many bills of your own to keep track of. Bookkeeping services can save money by making sure that all payments are made on time, and that the charges are accurate in the first place. 

Being Prepared for an Audit

Another more roundabout benefit of having a bookkeeper is that you get to make sure you're prepared in case of an audit. If an external party needs access to your books, having a clean system will pay off and potentially help you to mitigate tax penalties and expenses from other errors. 

Using Management Reports

Finally, a bookkeeper can be helpful for providing accurate management reports. For instance, you may be able to keep track of your profits and loss on a weekly or even daily basis. This way, you'll be able to adjust your team to keep in track with your business' goals and performance metrics. 

Hiring a full-time bookkeeper is one potential way to take advantage of these services. But if you're not ready to take on another full-time person, there are some options for outsourcing your bookkeeping to a third party. Either way, having someone to consistently maintain your books can become a time- and cost-saving proposition. For more information, contact a local company like Nathan Professional Corp bookkeeping.