The Basics of Business Record Keeping
As a business owner, you may rely on an outside accountant to do your taxes and prepare financial statements. However, it's best that you or someone in your organization take on the responsibility of keeping an accurate set of financial records. Keeping good records yourself, no matter how unpleasant it may seem, will minimize the costs of paying an accountant and allow you more control of your financial information and operations. Maintaining good records can also help you avoid headaches at tax time by keeping track of your receipts and other records throughout the year. This can help you remember the various transactions you made during the year so you can properly document and maximize your tax deductions.
Normally, tax records should be kept for three years, but some documents - records relating to a home purchase or sale, stock transactions, IRA and business or rental property - should be kept longer.Good record keeping not only enables the IRS to evaluate your business activity through original and supporting documents, but it also gives you the information you need to properly manage and grow your business. You can keep track of your business transactions by writing them down, usually in books such as journals or ledgers or by typing them into a computer software program. It's best to choose a system that's simple, yet can be changed to meet your needs in the future. An accounting system should show your income and expenses and can be easily understood, especially by you. If you have more than one business, it's best to keep completely separate books for each type of business activity.The two basic types of bookkeeping methods are single entry and double-entry systems.
Whether you choose to keep a written ledger or use computer software, record only the information that needs to be documented. Single-Entry BookkeepingSingle-entry bookkeeping uses a cash receipts journal, a cash disbursements journal and also the use of a checkbook. All business transactions are recorded in one of these journals. It is a practical bookkeeping system for small businesses that are just starting. The cash receipts journal should contain a record of all the money that you receive.
It should contain a column for items such as date, amount, and source of payment, the reason for the payment or anything that is of importance to your bookkeeping and of relevance. Document the money that your small business spends in a cash disbursements journal. It should have columns for the various expenditures that your small business may have with a line for each expenditure, including description of expense, date, payee, check number and total amount. Double-Entry BookkeepingAs your business grows, you may need to adopt a double-entry bookkeeping system. This system provides more information to paint a more complete picture of your business at any particular point in time.
This information may include available cash on hand, accounts payable, utilities, loans, etc. Your small business should use a double-entry bookkeeping system if has significant accounts receivable, accounts payable, equipment that depreciates or inventory. If your business will meet any of these, you should select a double-entry system from the start. You'll use journals and ledgers to record information that reflect your business transactions. Each transaction will be recorded twice, meaning the system will balance itself out.
For example, if you make a loan payment, you will decrease the cash amount in your cash account and increase the exact amount in the expense account. What Type of Records To KeepThe type of business you operate generally affects the type of records you need to keep for federal tax purposes. You'll need supporting documents to capture important details, such as your receipts, purchases, expenses, assets. Here are some other basic record keeping tips to keep in mind: "Daily business records are the best "Identify source of receipts "Record expenses when they occur "Keep complete records on all assets Remember, good record keeping is essential to the financial survival of your business. So take the time to keep good records, so you can run your business successfully - instead of it running you..
Copyright 2005Kate Smalley, Connecticut SecretaryFreelance Secretarial and Transcription Serviceshttp://www.connecticutsecretary.comkms@connecticutsecretary.comBudgeting For Prosperity
Budgeting For ProsperitySeven Steps to Follow To Achieve Financial FreedomWithout a sound financial plan, a business is doomed to failure - managing your personal finances is no different. A sound personal financial plan is crucial to both your financial and emotional well being.We have prepared a simple and easy to use budgeting process for you. This budgeting process will show you how to thoroughly develop a financial plan and lead you on the road to financial freedom.Make a complete list of your monthly income.The budgeting process always starts with a monthly income; one's income will show how much one has to spend each month.When developing your monthly income, make certain to include take home pay from your job, any bonuses that you receive, dividends and interest income from investments, tax refunds from the government, gifts from other family members, and any other type of income you may require during the particular month. If you would like a comprehensive income budgeting tool,...
Budgeting For Prosperity
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Funding Your Retirement: The 401K and 403B Way
Saving for your retirement doesn't have to be a nightmare as long as you are aware of your options. For now, we're focusing on 401K and 403B retirement plans. These two plans are essentially the same except that for-profit companies use 401Ks and non-profit companies, such as the government, use 403Bs.An employee contributes to a 401K plan with pretax salary. This means that this account appreciates without taxation until you retire or leave the company. So, 401K contributions are not included in your reported income.In essence, you receive an immediate tax deduction for your contribution.Many employees offer an automatic payroll deduction, so there isn't any extra effort involved for you.
Matching contributions or partial matching contributions are other incentives offered by employers. For instance, my employer matches every one of my dollars with a quarter. Sounds like small potatoes, but remember the beauty of compound interest.Of course, there are rules and regulations. You...
Funding Your Retirement: The 401K and 403B Way
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Armchair Millionaire Community Bulletin: You Don't Have to Be Rich to Live Rich
Interesting work by Richard Easterlin, an economic historian at UCLA, found that even though the gross domestic product per capita in the U.S. has more than doubled in the last 50 years, there has been virtually no change in the percentage of people who call themselves happy. In other words, a lot more wealth hasn't given us any more happiness. I'd also assert that more income won't necessarily provide you with financial security, either. Whether they are conscious about it or not, many people adjust their spending upward with their income, ending up with the same net worth earning $100,000 a year that they had when they earned $40,000 a year.
When we asked members of the Armchair Millionaire community to weigh in on this topic, we found that many have found ways to achieve financial security without a high income. Here are two such comments:"I make $50,000 a year--peanuts in Chicago--but I manage to save and invest over $15,000 a year. I contribute 25 percent of my pay to my...
Armchair Millionaire Community Bulletin: You Don't Have to Be Rich to Live Rich
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INTELLIGENT INVESTING
Talk at the "cooler" about investing, is usually around Stocks.Although I make money in Commodities, there is a "safe" way -that banks and investment houses use, but they won't tell You!How about a product that returns 12 - 42%, is 100% insured andbacked by the assets of the wealthiest institutions on the planet.Your banker takes your "CD" money and invests in this vehicle. Now you can turn the tables with this special insurance contract.Earn ROR equivalent to, or exceeding, the equity markets!Without any market risk or risk to principal - Guaranteed!!!Its called a Viatical Settlement - and here is how it works.Viatical Settlement - the sale of a life insurance policy at adiscounted rate to a group of investors by a person who is inthe advanced stages of a terminal illness.The Investors hold the policy and receive the full face value ofthe policy at maturity. A win-win situation. The "viator" is ableto enjoy the cash proceeds of his policy while still alive, andthe investor receives...
INTELLIGENT INVESTING
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Gershwin Heir's East Coast Premier of "Gershwin Sings Gershwin"
BOSTON, MA (ContentDesk) June 21, 2006 -- Alexis Gershwin has been singing the timeless classics of her uncles since she can remember, and while her shows have always incorporated her familys musical legacy, her newest creation, Gershwin Sings Gershwin, is a tribute of the most familial kind.
Gershwin Sings Gershwin starring Alexis Gershwin is a personal tribute to her uncles George and Ira Gershwin and celebrates their lives and their music.
The show features the Gershwin Singers and Orchestra and will premier on the East Coast at Stoneham Theatre July 27-30.
Stoneham Theatre is located at 395 Main Street in Stoneham, Massachusetts.???Ms. Gershwin has teamed with acclaimed musical director, Steven Applegate, producer/musical director for Shirley Jones, Lorna Luft, Maureen McGovern and many others.
The show includes all new arrangements of more than twenty Gershwin favorites.
Songs like A Foggy Day, Isnt it a Pity, They Cant Take...
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The Main Goals A Financial Plan Should Accomplish
This article is going to briefly touch on the main things a financial plan should accomplish. You don't need a professional to help you draw up your own financial plan, but you might need professional advice and help to put some of your plans into action. Such as advice on your insurance needs to make sure you, your family and your home are adequately covered, tax advice to make sure you are not paying too little or too much, investment advice to ensure that you can reach the amount you would like to retire with while still putting money aside for your children's education and advice about what to put or not to put in your will.Those are the things you should speak to a professional about, but you should have your financial plan worked out before you speak to one so that you can let them know exactly what you wish to accomplish with your plan. Your goal is financial success; your method for reaching that goal is your financial plan. After you have drawn up your plan is the best time...
The Main Goals A Financial Plan Should Accomplish
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Candles- It is easy to make your Own
Most people, especially women have a special affinity for candles. The candle-lit dinner, the relaxing bath by candlelight, even the candles on the kid's birthday cake are but a few of the ways we enjoy candles. Candles can set the mood for almost any occasion, even if the occasion is simply to forget the day and relax.If you've purchased very many candles, you've learned the cheapest candles are not necessarily the best, nor are the most expensive candles the best. The problem often comes between...
Candles- It is easy to make your Own
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