Your accountant goes through a lot. Every one of their clients demands their full, undivided attention and expects a miracle. What you may not realize is that every time you walk into their office there’s a long list of things they wish you were at least aware of before you signed up with them.
Want to really impress your accountant at your next meeting? We talked to some real tax professionals to find out what you need to do. Then take this advice we gathered from CPAs to heart. Continue reading
If you’ve been an entrepreneur for a long time or are just getting started, then you probably already know that small business accounting is not as easy as it sounds. Not only do tax laws regularly change, but accounting standards and practices change too, which makes it easy for a small business owner to get tripped up and make a few mistakes.
But keeping the books for your small business doesn’t have to be stressful. We want to help you simplify your life, save money and reduce stress by learning how to avoid these five basic bookkeeping mistakes.
1. Mixing Money. You might think it’s not a problem, but the IRS disagrees. Co-mingling your personal and business funds together is simply bad business and as a LLC or Corporation it could potentially cause a breach in the “corporate veil.” Not only is it a risk to your asset separation but also you may have to pay an IRS penalty if get caught. No matter what, keep your business and personal account spending separate. Take the time to speak with a small business accountant to help determine the best way for you to transfer money from the business to you personally or vice versa.