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Starting a Business - (3 - 3)

In the initial two parts of this article I talked about some
of the steps necessary in starting a business; Licenses and
Permits and the Form of Business Entity.

I would like to conclude this article with a mention of the
Accounting and Taxation needs of your business.

Accounting / Bookkeeping

The business entity concept provides that the accounting for
a business or organization be kept separate from the
personal affairs of its owner, or from any other business or
organization.

This means that the owner of a business should
not place any personal assets on the business balance sheet.

The balance sheet of the business must reflect the financial
position of the business alone. Accordingly, two of the
first things you should do is;

- Open a separate bank (checking or savings)
account for the business.

- Setup an accounting program for your business.
Whether you do it yourself, buy accounting software,
or hire an outside source to take care of the
accounting and taxation for you.

Accounting and Tax Software

Many small businesses, especially home-based businesses, do
their own accounting and bookkeeping.

Small businesses are also now exploring the idea of using a
tax software program to prepare their returns.

Software packages offer convenience, good prices (in most
cases) and organization, but can they really replace the
personal touch of an accountant or CPA?

The use of tax software is a personal decision for each
business to make.

=>Accounting Software For Small Business - Every small
business needs to know where the money went and is going.

Your accounting system may be as simple as using a
spreadsheet (Excel, Lotus, etc.), or you may need to
purchase accounting software.

There are many accounting programs on the market these days,
from the very inexpensive and simple to very expensive and
complex.

These top selling accounting software programs simplify your
small business accounting tasks, and provide all the reports
and tools you need to effectively use your financial data.

- Peachtree: Peachtree has many products and software
solutions, the also offer a trial download, which allows you
to test drive the product.

As a CPA I have used Peachtree and can attest to it quality.
http://working-at-home-ideas-and-information.com/PeachTree

- QuickBooks: QuickBooks is another popular full featured
accounting and payroll program designed for small businesses
- or, I should say, a small business accounting software
series.QuickBooks is available many versions.

I have used QuickBooks for years, both personally and
professionally.
http://working-at-home-ideas-and-information.com/QuickBooks

There may be accounting software unique to your industry,
which would be more appropriate for your business.

=>Tax Preparation: many accounting software series and
packages also come with a solutions to your taxes.

What ever you do in regards to taxes, the important thing is
to keep records.

According to the IRS you are supposed to have records for
any deductions.

More important... keeping accurate records will make the
accounting and tax preparation process much easier and will
save you lots of time and money.

If you decide to have your taxes prepared for you, keeping
organized records will save you money.

The less organized you are, the more questions the tax
preparer will have for you.

Also the the more time spent preparing your return,
generally, means that the cost goes up.

Here's wishing the Best of Business to you!

That concludes this article, STARTING A BUSINESS. If you
missed any of the preceeding sections, or would like to
reread them.

Go to
http://working-at-home-ideas-and-information.com/StartABiz

This article on STARTING A BUSINESS? is not "professionally"
advising you on business matters, or business agreements. If
you have any concerns in regards to your business, I would
advise consulting an attorney.

© Working at Home Ideas and Information
http://www.working-at-home-ideas-and-information.com/
269 Portico Aisle
Irvine, CA 92606



About the Author
This article was written by Michael Herman, a CPA. Michael publishes the
Working At Home Gazette -
A Powerful Tool for those who already are, or Planning to, Working at Home

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