Bookkeeping Service - Includes IncSmart Library
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Bookkeeper Registrration
$49 Incsmart.biz Fee
TOTAL $49.00
$49 Incsmart.biz Fee
TOTAL $49.00
Do I really need a bookkeeper?
A Bookkeeper will record the financial transactions for a business. If you don't want to
deal with this yourself because you are unfamiliar with what to do, or you just want to
focus more time on your business, then a bookkeeper is just what you need.
It is important for your company to maintain adequate records. As a business owner, it
is important for you to know how well your company is doing. Your financial records will
be needed in order to request credit from a vendor or to obtain a bank loan. They will
also be needed for your tax return.
A Bookkeeper will record the financial transactions for a business. If you don't want to
deal with this yourself because you are unfamiliar with what to do, or you just want to
focus more time on your business, then a bookkeeper is just what you need.
It is important for your company to maintain adequate records. As a business owner, it
is important for you to know how well your company is doing. Your financial records will
be needed in order to request credit from a vendor or to obtain a bank loan. They will
also be needed for your tax return.
When to outsource bookkeeping?
When your company is small and you can not afford, or need, to hire a full-time,
full-charge bookkeeper; when your business grows and you need professional and
uninterrupted finance support; when you are worn down by dealing with bookkeeping
problems, which might include inaccurate account balances or simply slow accounts
receivable collections.
When your company is small and you can not afford, or need, to hire a full-time,
full-charge bookkeeper; when your business grows and you need professional and
uninterrupted finance support; when you are worn down by dealing with bookkeeping
problems, which might include inaccurate account balances or simply slow accounts
receivable collections.
Importance of Good Records
Unless your business is accounting or bookkeeping, keeping financial records is
probably not what you do best. Most likely, you'd rather spend your time selling
your product or service. However, if you are going to run a successful business,
accurate and timely financial information is a must. Here are some of the reasons
why you need a good financial record-keeping system:
- Monitoring the success or failure of your business. It's hard to know how your
business is doing without a clear financial picture. Am I making money? Are sales
increasing? Are expenditures increasing faster than sales? Which expenses are too
high based on my level of sales? Do some expenditures appear to be "out of
control?" Providing the information you need to make decisions.
- Evaluating the financial consequences should be a part of every business
decision you make. Without accurate records and financial information, it may be
hard for you to know the financial impact of a given course of action. Will it pay to
hire another salesperson? How much will another production employee cost? Is this
particular product line profitable?
- Obtaining bank financing. A banker will usually want to see financial statements: a
balance sheet, income statement, and cash flow budget for the most current and
prior years, as well as your projected statements showing the impact of the
requested loan. A banker may even want to see some of your bookkeeping
procedures and documents to verify whether you run your business in a sound,
professional manner.
- Obtaining other sources of capital. If your business has reached the point where
you need to take in a partner, any prospective partner will want to become
intimately familiar with your financial picture. If you need capital and are thinking of
taking in an outside investor, you will need to produce a lot of financial information.
Even your suppliers and other creditors may ask to see certain financial records.
Such information may be produced by your outside accountant, but it is based on
your day-to-day record-keeping.
- Budgeting. All businesses should use a budget for planning purposes. A budget
will help keep your business on track by forecasting your cash needs and helping
you control expenditures. In addition, if you are seeking bank financing or other
sources of capital, a banker or prospective investor will probably want to see your
budget as evidence that your business is well planned and stable. You must have
solid financial information to prepare a meaningful budget.
- Preparing your income tax return. Whether your business is a sole proprietorship,
partnership, or corporation, you must file an income tax return and pay income
taxes. With good records, preparing an accurate tax return will be easier and you're
more likely to be able to do it on time. Poor records may result in your underpaying
or overpaying your taxes and/or filing late (and paying penalties). If your accountant
prepares your income tax return, poor records will almost certainly result in your
paying higher accounting fees. If your business is a partnership, not only will you
have to prepare a partnership tax return, but partnership return amounts will pass
directly to the tax return of each partner. So your record-keeping will directly affect
the tax return of each partner.
- Complying with federal and state payroll tax rules. If you have employees, you are
aware of the myriad rules and regulations relating to payroll taxes. Payroll tax
deposits must be made according to strict deadlines. Late payment of payroll taxes
results in severe, and unnecessary, penalties. Also, you must file a payroll tax
return every quarter,which you must reconcile with the payroll deposits made during
the quarter. Then at the end of the year, you are required to give your employees
and the government W-2 forms, which must agree with your quarterly payroll
returns. Sound bookkeeping practices will make compliance with all these payroll
rules easy. Poor records will make it impossible. Submitting sales taxes. If you
collect sales tax from your customers, good records will make it easy for you to
compute the tax due and prepare the required reports.
- Distributing profits. If your business is a partnership, you will need good records to
determine the correct amount of profits to distribute to each partner. If you are
operating as a corporation, you must determine the company profits that you will be
paying out as dividends to the shareholders.
Unless your business is accounting or bookkeeping, keeping financial records is
probably not what you do best. Most likely, you'd rather spend your time selling
your product or service. However, if you are going to run a successful business,
accurate and timely financial information is a must. Here are some of the reasons
why you need a good financial record-keeping system:
- Monitoring the success or failure of your business. It's hard to know how your
business is doing without a clear financial picture. Am I making money? Are sales
increasing? Are expenditures increasing faster than sales? Which expenses are too
high based on my level of sales? Do some expenditures appear to be "out of
control?" Providing the information you need to make decisions.
- Evaluating the financial consequences should be a part of every business
decision you make. Without accurate records and financial information, it may be
hard for you to know the financial impact of a given course of action. Will it pay to
hire another salesperson? How much will another production employee cost? Is this
particular product line profitable?
- Obtaining bank financing. A banker will usually want to see financial statements: a
balance sheet, income statement, and cash flow budget for the most current and
prior years, as well as your projected statements showing the impact of the
requested loan. A banker may even want to see some of your bookkeeping
procedures and documents to verify whether you run your business in a sound,
professional manner.
- Obtaining other sources of capital. If your business has reached the point where
you need to take in a partner, any prospective partner will want to become
intimately familiar with your financial picture. If you need capital and are thinking of
taking in an outside investor, you will need to produce a lot of financial information.
Even your suppliers and other creditors may ask to see certain financial records.
Such information may be produced by your outside accountant, but it is based on
your day-to-day record-keeping.
- Budgeting. All businesses should use a budget for planning purposes. A budget
will help keep your business on track by forecasting your cash needs and helping
you control expenditures. In addition, if you are seeking bank financing or other
sources of capital, a banker or prospective investor will probably want to see your
budget as evidence that your business is well planned and stable. You must have
solid financial information to prepare a meaningful budget.
- Preparing your income tax return. Whether your business is a sole proprietorship,
partnership, or corporation, you must file an income tax return and pay income
taxes. With good records, preparing an accurate tax return will be easier and you're
more likely to be able to do it on time. Poor records may result in your underpaying
or overpaying your taxes and/or filing late (and paying penalties). If your accountant
prepares your income tax return, poor records will almost certainly result in your
paying higher accounting fees. If your business is a partnership, not only will you
have to prepare a partnership tax return, but partnership return amounts will pass
directly to the tax return of each partner. So your record-keeping will directly affect
the tax return of each partner.
- Complying with federal and state payroll tax rules. If you have employees, you are
aware of the myriad rules and regulations relating to payroll taxes. Payroll tax
deposits must be made according to strict deadlines. Late payment of payroll taxes
results in severe, and unnecessary, penalties. Also, you must file a payroll tax
return every quarter,which you must reconcile with the payroll deposits made during
the quarter. Then at the end of the year, you are required to give your employees
and the government W-2 forms, which must agree with your quarterly payroll
returns. Sound bookkeeping practices will make compliance with all these payroll
rules easy. Poor records will make it impossible. Submitting sales taxes. If you
collect sales tax from your customers, good records will make it easy for you to
compute the tax due and prepare the required reports.
- Distributing profits. If your business is a partnership, you will need good records to
determine the correct amount of profits to distribute to each partner. If you are
operating as a corporation, you must determine the company profits that you will be
paying out as dividends to the shareholders.
IncSmart.biz
United States Corporation Service
United States Registered Agent
Phone: 702-940-9845
Fax: 702-951-9809
Email: info@incsmart.biz
United States Corporation Service
United States Registered Agent
Phone: 702-940-9845
Fax: 702-951-9809
Email: info@incsmart.biz
| Disclaimer: Please note that IncSmart is not a law firm or an accounting firm. If you seek legal or tax advice, we recommend that you hire an attorney or a CPA. LINKS |
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