Bookkeeping is the very heart of your business, it is the method by which you keep track of the money you have spent, what you spent it for and then it is subtracted from the money you made and this then become your profit or loss. 

For many years the old Mom and Pop Stores as they where call felt that if they had money in their pocket or in the cash register at the end of the day they had made a profit and back than maybe it was true but not today because of the fact you have to collect sales tax for the state the city and county so some of that money is not  yours and you need to know how much of it belongs to  state, city, county, etc. before you can take what is yours. So in order to do that you must have some kind of bookkeeping system.

It  can be done the old fashion way by using  13 column spread sheets and hand writing out each check and what it was spent for and posting each sale as it was made breaking down the sale of the item and the various sales taxes collected on that sale or by using the register tape that was created by the cash register and then they can all be added up for the month and subtracted from each other to see what your profit it.

You can also use a computer and one of many bookkeeping programs that are out there or you can bring all of these items to us and we can help you do it and then do what we call a profit or loss statement or also known as an income statement and it will tell you just where you are at, it also important that you keep your check books balanced. 

It is also important that if you are running a business that you have a separate bank account for your business and one for your personnel money it makes it a lot easy to but things to getter at the end of the year and it also help you know how much you have taken out of the business during the year so that when you tax return is being done you will have an idea of about how much you will have to pay taxes on. You must also keep track of major purchases, such as equipment, shelving or anything that you use to run your business to make a profit.

Business like Mary Kay, Avon, Amway, Watkins, etc.  you will need to take and inventory at the end of the year so that you can determine what your gross profit is which is the sales less what you bought to sell and less what you still have on hand to sell, then your cost of doing business is subtracted from that to determine you net profit or your taxable profit or loss which is added to any other income you may have.  All of this is what is requiring by Internal Revenue Service when filing your tax return.

These figures are all put on a form for your return called a Schedule C and must be attached to your return when filing it. Companies like mention about are ones that Internal Revenue Service are looking at for audit purposes so it is very important that you keep good recorded. Because if you don’t Internal Revenue Service can and will call it a hobby and it will not be deductible from your other income. If you have rentals it is also true that you need to keep good records on them also.

 This is where we can help you. We will spend the time to explain all of this to you and help you keep on the right track.