Good account is not only maintain Financial transaction but also save tax.
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The problem you are having with your credit is a completely separate question to the question about accounting. The reason you're having trouble getting a loan is because of the amount of income that you show on your tax return.
A lot of people that deal in cash don't always report all of their income to the IRS (which is illegal). But if you are looking to buy a home you may want to save up a large chunk of cash for a down payment because "no document loans" have become a thing of the past.
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The Money Track
Independent Financial Advice & Personal Financial Planning
An accountant may not be necessary in the day to day running of the business. You can do all your bookkeeping and financial decision making. You may be required by law to hire an auditor/accountant to verify the credibility of your financial records.
When one thinks of accountants, it is not uncommon to immediately make an association of people in the profession with big corporations. After all, the complex financial statements have to be audited by accounting firms and one tends to think that’s their core role.
However, hiring the services of accountants can be quite fruitful for individuals and small businesses as well.
I've read a lot of suggestions already and I also agree to most of it. However, I think I haven't seen anyone suggesting accounting outsourcing. If you wanna save time and all the troubles in looking for the best accountant, then you should try outsourcing. There a lot of BPO companies that offer various kinds of services, including finance and accounting. Looking for an outsourcing partner, I think, is a easier and faster. Give it a shot! ;)
It's going to save you time and money. Plus the stress, but honestly I don't think you need it at all unless you're managing millions. If you're doing $500K a year or so it's okay.
Here are a few examples of services your accountant should provide:
Help you decide what type of entity (such as S-Corp or LLC) and ownership structure to have when you first get started; your accountant should work with your attorney on this.
Design and set up your accounting system so that year-end financial reporting will be easier.
Ensure that you pay the correct types of taxes in the correct amounts.
Ensure that you send out W2 and 1099 forms to the proper people at the proper times, and also make sure that if you send out 1099s, the IRS will agree with you that those individuals are independent contractors and not employees. This is a common mistake that can cost you a lot of money and stress.
Advise you on deductions and how to separate your personal and business expenses.
Advise and guide you through an audit if you ever have one.
Advise you on specific transactions, such as whether it's better to lease or buy.
Compile your financial records for the past period.
Help you understand your financial statements. You should use your accountant's expertise to help you analyze your financial statements so you can understand what he or she is telling you. If you neglect to do this, you won't know as much as you should about how your company is doing.
You will also need an accountant if you have questions about what kinds of business expenses are deductible. Most of these rules and regulations are moving targets-they change frequently and often vary from state to state. A good accountant will always be on top of the changing laws and regulations and, more importantly, will know what applies to you.
Indeed. As Bert_Seither has mentioned, if you owe to have a professional accountant, you could easily wind up all your day-to-day activities within a limited time and in a quicker way too.
The only difficulty is in sorting out a better accountant(s) who could visibly make your accounting/bookkeeping, payroll and tax assistance to be simpler. If at all you have found such reliable accountants, you can be stress-free!
It is not necessary that to run accounting system an accountant is needed. A small business owner can do it by himself also. Whoever wants to learn accounting, I suggest them to go for an online accounting class. There are many classes available today who teaches you the best knowledge of basic accounting. The courses are designed in such a way that provide you fast and easy learning and with a little practice you can manage your financial statements easily.