Home
>
Tax
>
How To Set Up A Tax-Saving Bookkeeping System

How To Set Up A Tax-Saving Bookkeeping System

One of the most important, but least understood or appreciated aspects of any business is its bookkeeping or accounting system. And, because very few people know much about the reasons for a bookkeeping system, most people are frightened by the thought of the work involved in setting up such a system, and the drudgery of daily maintenance.

Why bookkeeping is important for your business?

First of all, you can track where the money are from, ane where the money goes to. Find out which ones are the most valuable resources or advertising methods.

Secondly, it is for your Tax purpose. When tax season is coming, if you have a bookkeeping, you need not spend 5 days to dig out all the receipts and sales reports.

There's really nothing complicated to bookkeeping it's as simple as keeping a daily dairy and' or maintaining your personal checkbook. At the bottom line, it's simply a matter of recording your deposits-your incoming monies-and keeping a record of the money you spend.

So, the first thing you need to do is open a business account for your extra income business or endeavors. Generally, this is simply a matter of asking the new accounts teller at a local bank for a business account registration fee, send it in to the appropriate commissioner, and from there, open you a new business account-complete with imprinted checks.

Drop by a local stationery store and pick up a loose leaf notebook, and a supply of paper. We've always picked up a supply of index tabs at the same time--either to separate the months or the accountability sections for each item we sell.

Assuming that you want to make it as simple as possible, while at the same time keeping it as efficient as is necessary-here's what you do and how to do it.

On the first page in your notebook, write on the top line and in the middle of the page: Monday, January 1st, 2004 or whatever day you officially start your business...Then, as your orders come in, if by mail, as you open your mail-jot down starting from the left side of the page, the amount you received-dash-for what-from whom, and their address. The page might look like this:

Monday--- January 1 2004

$ 14 Tapes 100 S.W Fee-Barton 10 Hong Kong Dir #261 10 " " #261 3 Whsle Prt Dir #49 70 Hot Line Lst--Morgan

TOTAL INCOME $207 EXPENSES 0

That's all there is to it, and boiling it all down, it amounts to recording what you receive and what you spend. The next entry, immediately under that first day's entry might look like this:

$207 Deposit 11 Printer-for copies 10 Sec & riches thru R Est #302-Rogers( 75010) 3 Simplified annual M.O bkkp Sys (21104) 10 Money Magnetism-Kline (88033) 36 R.W Fee-Magnuson (10067 6 Manual on Bookselling-#291-Magnuson (10067 15 display Ad- Smith 948089) 22 Ideal Ofc Supplies-printer paper

TOTAL INCOME $80 Expense $33 Deposit $207

And then, carry on with this recording of the money you deposit, receive and spend each day with similar entries for each day of the week-every day Monday Thru Saturday for each week. It's simple uncomplicated, and a positive record of your business activity.

Then at the end of each month, transfer this daily information to one of the low cost bookkeeping registers that your tax consultant or accountant can work from. These people won't work from your daily dairy, ad will not transfer the information you record in it to a formal bookkeeping register without charging you a small fortune. it's not that big of a job, ad if you do it after te close of the business on the last day of the month, it will take at the most a very few minutes. Then, of course, when you're ready to do your taxes, you simply give your bookkeeping register to whoever is going to do your taxes, and you're home free.

The bookkeeping register you'll need can be any simple columnar notebook-All you really need is some sort of notebook with a number of columns marked off, a title written at the top of each column, and a record of te money received for each day relative to the product or service each column represents. Then at the end of each month, you can simply add the totals from each column and you'll instantly know how much money you took in from each of your offers.

Beyond te date column, will be your record of expenses or money spent. Again, you should title each of the columns you'll be entering figures into, and then record your expenditures for items falling into those categories. Then at the end of each month, it's a simple matter to add the total from each column and know exactly where you stand relative to profit or loss-how much you took in compared to how much you spent.

Bookkeeping and/or accounting is a very simple and should not scare you. Just keep it simple, ad up-to-date.

If you want to use advanced software to do the job, you can either use Quicken (www.quicken.com) or Microsoft Money. You can buy them online or from local book store. By using these software, you can even download bankstatements and credit cards statement. Then you can specify which catagories are belong to business expense. It will save you a lot of time.

---------------------------------------------------------
Julia Tang publishes Smart Online Business Tips, a fresh
and informative newsletter dedicated to supporting people
like you! To find out the best online business opportunities,
and to discover hundreds more proven and practical internet
marketing secrets, plus FREE internet marketing products
worth over $200, visit: www.quicken.com
------------------------------------------------ ----------

Note: Feel free to publish it with the resource box and content unchanged

Batchtown Chicago prom limo .. Lockport Chicago limo O’Hare

In The News:

A virtual private network can help ensure your information remains security and your privacy remains intact. Kurt the CyberGuy explains.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Artificial intelligence-based cameras are giving air defense operators unprecedented capabilities in monitoring and protecting airspace.

Apple's iOS 18.1 Inactivity Reboot automatically reboots your iPhone if it hasn't been used or unlocked for more than three days, providing better data protection.

An inventor designed rooftop solar panels for a Tesla that draws solar energy while the car is parked, adding travel mileage without plugging in.

There are currently no laws governing what artificial intelligence can and cannot do with the information it gathers; here are 10 things to avoid telling AI chatbots to keep yourself safe.

A credit union with over 240,000 members recently revealed it was targeted by cybercriminals, resulting in a data breach that was part of a two-month attack by hackers.

Scammers have become skilled at creating convincing fake websites that can easily fool unsuspecting users. The CyberGuy offers tips to protect yourself.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

CAPTCHAs, which are used by websites to confirm whether users are people or bots, are harmless, but hackers are using them to infect PCs with malware.

Hackers recently leaked personal information of about 500,000 Americans and stole patient medical records that included lab results and insurance details.

The holiday season sees a rise in mobile shopping scams. Tech expert Kurt “CyberGuy" Knutsson helps you learn how to stay safe.

Tech expert Kurt “CyberGuy" Knutsson says a VPN enhances online banking security by encrypting data and protecting privacy.

Beware of these six sneaky holiday scams. Tech expert Kurt “CyberGuy" Knutsson gives you tips to avoid falling victim.

Tech expert Kurt “CyberGuy" Knutsson reveals how to securely back up and factory reset your Android to protect your privacy and data.

Artificial intelligence is making life easier for cybercriminals, allowing them to create elaborate scams to trick people. Kurt the Cyberguy explains how to protect yourself.

Cut through all the digital clutter and delete multiple emails from your Android simultaneously. Kurt the CyberGuy explains how it's done.

Tips to prevent your holiday decorations from being stolen

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt "CyberGuy" Knutsson lays out the immediate steps you should take if your phone has been hacked and your personal information becomes vulnerable.

Fraudsters are sending people bogus invoices through PayPal as part of a sneaky scam that is going around; here's how to protect yourself from being fooled.

A former Colgate-Palmolive employee was shocked to discover $750,000 had been drained from her 401(k) account. "CyberGuy" offers tips on how to prevent identity theft.

Electric vehicle maker Harbinger recently showed its electric delivery truck can handle icy roads with agility and stability in winter.

To make the busiest time of year more manageable, here are some tricks for tracking your packages, taking quality family photos and curating the perfect Christmas playlist.

Kurt "CyberGuy" Knutsson explains how to keep your online Amazon gift purchases a secret from loved ones or friends this holiday season.