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Why Is Bookeeping For Your Business So Important

Thursday, April 25th, 2013

In order to have bookkeeping skills and experience, you should have the basic experience of handling bookkeeping jobs as well as proficient in bookkeeping procedures. Although it is not mandatory that you should possess qualification in accounting or bookkeeping, it is an added advantage if you have some form of formal training in this field.

The steps in creating a business plan for your bookkeeping business are ideally the same as for any other venture. Firstly, market research is key. See what your competitors are doing right, and wrong. Research can be easily performed on the web, or you could call up your competitors feigning interest as a potential client to see what services they offer. Learn from your competitors mistakes so you don’t follow the same pitfalls, and improve on the positive aspects of their business.

Starting and running a business in bookkeeping is one of the most profitable businesses that you can start from home. Apart from being low cost, you also do not need to rent office space for you to provide these services especially when you are just starting out. However, what is required is the knowledge and understanding of bookkeeping procedures as well as possessing the personal quality of being able to pay attention to detail.

There are two types of bookkeeping: single entry and double entry. In single entry bookkeeping, the record of each transaction is carried to either the debit or credit column of a single account. In double entry bookkeeping, two entries of each transaction are carried to the ledger: one to the debit side, and one to the credit side, of the corresponding account. This is so the two entries can be used to check each other.

If you think about it, bookkeeping from home makes total sense. You will be hard pressed to find companies whose accounting systems are not computer based. Every companies ultimate goal is to cut costs and increase profits. So in order to keep these overhead costs low, many companies are willing to hire work at home employees these days. So it only stands to reason that many businesses would be interested in providing someone with the right skills and knowledge with a virtual bookkeeping job..

A Guide to Tax Planning Strategy

Monday, June 4th, 2012

Tax planning strategies may be known to some people as tax schemes, however, we are talking about legal schemes and plans.It can help guide the conduct of both your personal and business transactions so you can have more money for other things such as expenses, expansions, and investments.This gives you plenty of time to learn about any changes that will be coming up the next year, and whether or not you need to adjust some of your investments.

Basically, the amount you can save from utilizing an effective tax planning method can be your source of working capital. Hence, many entrepreneurs are getting more and more interested in experts who offer tax planning services. The experts know the rules and can easily choose which strategy (or strategies) would work best for certain situations. Hiring them may cost some, but doing so can certainly save you a lot more in the end. That said, you can conclude that it’s an investment worth making.

Now, it’s important to note that simple tax avoidance is totally different from tax evasion. The former is about looking for ways on how to lower tax liability legally. The latter, on the other hand, is reducing your tax amount through deceitful means such as concealing transactions or irregular accounting. If you choose to avoid tax payment through legitimate means, you are being wise. If you opt to evade though, then legal consequences may hunt you in the future.

A tax planning strategy can be simple or complex. It can be designed for either an individual situation or a business. Whichever though, a professional tax planner will likely advise you to adapt not just one but several strategies to optimize your tax cuts. And regardless of the number of techniques, they are expected to accomplish any or all of the following:

Tax Rate Reduction

You can’t literally make your tax rate lower but you can do some things to attain such effect. One of these is by shifting investment assets to your children. Children belong to the “lower-bracket taxpayer” so they are not required to pay as much as you do.

Taxable Income Reduction

The best way to reduce taxable income is by availing all possible tax deductions both for personal and business situations. This means that you should know what the deductibles are. For instance, there are special deductions that may apply on business trips, automobile expenses, and even meals and entertainment. Purchasing an insurance plan or investing for your retirement can also help lessen taxable income.

Delay the Due Date for Your Taxes

This may not sound good because the word “delay” often connotes something negative. However, it is not so when it comes to taxpaying. You are not really refusing to pay what’s due. The idea is to legally delay the schedule for your payment. You can do this by doing things that will holdup the due date of declaring an income item.

Basically, it is about postponing the receipt of income till the next payment and accelerating the present payment of expenses. The rule of thumb is this: Minimize taxes now even when it means paying higher in the future. No one knows what’s going to happen anyway. Laws on taxation are always changing and you might end up paying something lower next time. Also, personal plans and conditions may take a turn and consequently, can affect the tax you have to pay. It would be ideal to take you chances. Besides, this is a tax planning strategy that has been tried and tested for decades. Businesses continue to use this tactic because apart from being feasible, it has never failed to work.

Welcome to Lauderdaleirscpa.com! If you are looking for a blend of personal service and expertise, you have come to the right place! Their Fort Lauderdale CPA practice offers a broad range of services for small business owners such as tax planning, business consulting (profit maximization, revenue growth), tax preparation and accounting (bookkeeping). They also assist individuals and businesses seeking tax help/relief with IRS tax problems . They are experienced and their fees are affordable.