Small Business Bookkeeping

If you're just getting started, develop the habit of tracking your income and expenses. Don't rely on your memory...you won't remember every penny spent or earned.

Keeping good financial records doesn't need to be complicated. The Keep-It-Super-Simple (K.I.S.S.) method is your best bet...it works great for me.

A few suggestions...

Accounting software like Microsoft Money and QuickBooks Pro are excellent options. Either program is ideal for small business and will help you track income, expenses, pay bills, exchange data with a spreadsheet, online banking and more.

If accounting software seems too complicated, at least keep track of your income, receipts and canceled checks. When it comes time to file your tax returns, you'll be glad you did.

Income. Record everything you earn from every source. This may seem obvious, but amazingly, a few small business owners don't track of their income.
Expenses. When you receive an invoice, it's a good idea to write a note on it describing what is was for and whether or not it is business-related. If you use QuickBooks or other accounting software, enter and categorize it.
Receipts. Make a note of what you bought, the date and amount of purchase, and what it was for on the back of every receipt. Do it as soon as possible, otherwise you'll forget. Also, certain types of inks fade or even disappear.

Jot down that same information in your PDA, planner, date book or calendar. It will help you remember to take all of the business-related deductions you're entitled to at tax time. Besides, the IRS will want to see this during an audit.

Bank records. If you physically write checks, ask the bank to return them with your bank statement each month. If you do all of your bill paying and banking online, be sure you keep your monthly statements.
Taxes. Most business-related expenses are tax deductible. Just make sure you understand what your legal deductions are first... consult with a qualified expert.

Turbo Tax is an excellent option if you want to prepare your own tax returns. You get step-by-step guidance, electronic filing, help and advice for Schedule C, and extra guidance for business asset depreciation and home office deductions.

Read this disclaimer »

There is a way to legally REDUCE your taxes

If you are self-employed and live in the United States or Canada, you can probably reduce your income tax.

Over the past 10 years, Tax Reduction Institute has helped over 50,000 taxpayers SAVE over $300 million in taxes!

Sanford "Sandy" Botkin is its founder and I can tell you from personal experience he knows what he's talking about. Applying Sandy's methods has saved me thousands of dollars.

If you invest time, effort and money building your business, it makes sense to learn how to keep more of what you earn.

For a more detailed discussion on taxes, I wrote an article you may find useful. Read Small Business Tax Tips for 2004.

Tax resources

Tax Reduction Institute is the best resource. As I stated before, you may be able to save thousands of dollars in taxes by applying their methods.
Eva Rosenberg is TaxMama. Her site is filled with useful tax information...with a 'mother's' touch. You'll find tips, tools, advice, news and more.
The Internal Revenue Service has a web site. Get tax forms, publications, or information there.
The Small Business Administration (SBA) offers a variety of useful publications...no charge. There is also a place to post an online business card. It's a free service...and the site sees thousands of visitors daily.

Return from Small Business Bookkeeping to Small Business Ideas

quick links

are you a subscriber?

Get realistic suggestions, information, and solutions that actually work.

YOUR NAME

EMAIL ADDRESS

html Text

small business ideas