Top 10 Tax and Bookkeeping Tips for Non-Accounting Business Owners
As you all know, the IRS does not rest. This means that even a minor slip-up could result in you and your business receiving an audit letter from the IRS. Moreover, the IRS is planning to hire over 87,000 new auditors in the coming years. This can only mean that the IRS is preparing to audit businesses, big and small, all over the United States.
In order to avoid any inconveniences that the IRS may cause to your business, we have compiled, what we consider, the 10 most important tax and bookkeeping tips that you need to implement in your business today!
1- Avoid mixing various accounts!
What we mean by this is, you need to, first of all, avoid mixing your business and personal bank accounts. Keep those charges separate! If you mix both, then you raise your chances of making mistakes in your tax returns and thus, raising a red flag for the IRS.
2- Cut back on manual reporting!
You really should consider looking for the best accounting software for your business to connect your bank accounts to it and automate the whole process. Such softwares, like QuickBooks, TaxWise and more, would prove extremely useful as it will help in tracking all your operating expenditures, categorizing expenses, authorizing the sending/payment of invoices, generating reports, and much more!
3- Counting with experience!
If you’re doing your tax returns and bookkeeping yourself and you have little experience, we suggest that you hire a professional bookkeeper or a reliable tax professional, even if it’s on a temporary basis. They will aid in recording and classifying transactions correctly, leaving little room for error. As an added bonus, they will also provide essential tips and tricks that’ll help you save more on taxes and pump more earned revenue back into your business.
4- Open and check accounts!
You need to, if you don’t at the moment, regularly analyze your bank statements and try to find any discrepancies that might raise red flags for the IRS. If possible, analyze your statements on a daily basis.
5- Utilize every deduction!
Wycotax recommends that you label and categorize all the expenses and keep track of your cash flow. Not only will it help in maximizing tax write-offs but it will also aid in maximizing credits received.
If you would like to get a head start on that business you’ve been meaning to start, then this is the opportunity. What’re you waiting for?
Attend our General Business Workshop in which you’ll learn the tips and tricks to get you started on your entrepreneurial journey.
6- You need payroll accuracy!
Third party payroll services, such as Wycotax, can prove exceptionally beneficial, as they can ease your burden and let you concentrate with 100% focus on running your business and not making errors in your records.
7- Tax saving benefits!
There could potentially be occasions where your business ends up generating a much greater net income. In such a situation, there are several paths you can choose to take. To avail certain benefits, you need Wycotax to help you.
8- All tax forms will be needed!
Any income tax that you or your business receive has to be reported to the IRS. Regardless of whether you withdraw funds for retirement, savings accounts, and/or educational purposes, will be included in those returns. The IRS expects that you will report all to most of your income!
9- Keep your records neat and organized!
Regardless of how long you have been running your business, it is crucial that you keep your records organized in a neat manner! This is essentially because if the need arises, then you know where to look and find a particular record instead of shuffling to piles of paper to find that one tiny piece of information.
10- Top priority reports!
WYCOTAX advises you to employ proper accounting control to help you get rid of frauds / fraudulent activities. For instance, using two authorized personal signatures when dealing in huge transactions or secure pin for your debit/credit cards, etc.
If you would like to get a head start on that business you’ve been meaning to start, then this is the opportunity. What’re you waiting for?
Attend our General Business Workshop in which you’ll learn the tips and tricks to get you started on your entrepreneurial journey.
If you would like to learn more or get help for your business, then contact us at info@wycotax.com or call us on (956) 425 9926 – and we’ll be happy to help!
