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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.

4 Ways A New Business Owner Can Keep The Bookkeeper Happy

Working with a bookkeeper or accountant is one of the best decisions that new business owners can make with their company finances. Just like many other aspects of business, it's good to hire professional help when you are just learning the ropes of bookkeeping.

To help you and your bookkeeper manage your money well, here are the top four ways to make your bookkeeper happy.

Separate Personal Expenses

Mixing personal and business expenses is one of the most common errors that new entrepreneurs make. And it can be costly on many levels. Since personal expenses can't be used for tax purposes and makes your books incorrect, they will need to be weeded out. This costs time and money you're paying an accountant or bookkeeper to do.

Start off right by keeping your personal costs and business items diligently separate. This way, you'll really know what your business earns in profit too. 

Keep Up With Documentation

Small business owners are usually very busy. But if you let things pile up, it can quickly get out of hand and become an even bigger job to dig out. In addition to costing extra time down the road, you will not be able to get useful information to make financial decisions until you get caught up.

Make time in your schedule to work on the books at least once per week. It'll be easier to remember what you've done, what items are for, and find missing transactions. And being on top of things will make questions from your bookkeeper easier to answer. 

Use Technology

Modern technology can make your life easier and improve your bookkeeper's ability to give you the data you need. Today's accounting software packages and tracking apps are more user friendly than ever, and they can generally do as much or as little as you ask them to do. So, the more you can enter into some kind of computerized system, the less work your bookkeeeper will have to reconstruct. 

Make use of technology to save money, too. For example, digitally scanning receipts or downloading bank transactions means less data entry that you must pay to be completed. 

Ask Questions

Don't be too shy to ask questions of your bookkeeper. It's much easier to correct misconceptions, adjust entries, and fix mistakes if you can catch them before they are made or before they have an impact on your books. Everyone will be happier in the long run. 

By knowing how to work with a bookkeeper or accountant and what to be diligent about on your end, you can create a team that will help your business thrive.