Quote:
Originally Posted by 911 Rod
I cannot emphasize enough how important it is to keep on top of your books.
People sometimes focus on production and give their bookkeeper a shoe box of assorted papers once a year.
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And accurate bookkeeping! Enter the correct date of all expenses and income. Every singe expense and bit of income.
When I set up my business, I sought out the advise of a CPA. He helped set up my chart of accounts, and classes and categories for billing. If you have expenses for one client, deduct that cost from that account, and you can see the real profit of each customer.
I just bring my CPA a copy of my QuickBooks file, and he can adjust things and run reports, then do my taxes. As I mentioned before, as a LLC the LLC itself does pay any taxes. All taxes are paid by the owner(s) of the LLC.
On the first year of business, we were audited by the IRS. II had to buy a new printer-scanner-fax-copier to print paper copiers of every single receipt. That took a ream of paper and sever weeks of time. In the end, they said we underpaid by 30 bucks. She did not even reopen the case for that. Only because I had the accounting done right did we get out of the audit unscathed.