Basic Business: Good Record Keeping

Written by Wild Bill Montgomery

Everyone in business must keep records. What can good record keeping do for you? I'll give it to in a straight no-glamour content.

Let's Start Now:

Make sure you monitorrepparttar progress of your business: Good record keeping can show whether your business is improving, which items are selling and what changes are needed. Good record keeping can berepparttar 117916 difference between failure and success.

Prepare accurate financial statements: You need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can be a big help when dealing with your bank and creditors. An income statement showsrepparttar 117917 income and expenses ofrepparttar 117918 business for a given period of time. A balance sheet shows assets, liabilities and your equity inrepparttar 117919 business on a given date.

Identify source of receipts: You will receive money or property from many sources. Your records can identifyrepparttar 117920 source of your receipts. You need this information to separate business from non-business receipts and taxable from nontaxable income.

Keep track of deductible expenses: You may forget expenses when you prepare your tax return unless you record them when they occur. Believe me you will need allrepparttar 117921 deductible expenses you can find.

Prepare your tax returns: Records must supportrepparttar 117922 income, expenses and credits you report on your tax returns. Generally, these arerepparttar 117923 same records you use to monitor your business and prepare your financial statements. You must keep your business records available at all times for inspection byrepparttar 117924 IRS and/or your State Department of Revenue. Ifrepparttar 117925 IRS or State Department of Revenue examines any of your tax returns, you may be asked to explainrepparttar 117926 items reported. A complete set of records will speed uprepparttar 117927 examination and makerepparttar 117928 experience feel that much less like a rectal exam.

What kind of records should you keep?

Except in a few cases,repparttar 117929 law does not require any special kind of records. You may choose any system suited to your business that clearly shows your income.

The type of business you operate affectsrepparttar 117930 type of records you need to keep for federal tax purposes. You should set up your books using an accounting method that clearly shows your income for your selected tax year. If you are in more than one business, you should keep completely separate records for each business.

A few Bookkeeping Tips:

* Daily business records arerepparttar 117931 best * Identify source of receipts * Record expenses when they occur * Keep complete records on all assets

Some supporting documents you will need:

Purchases, sales, payroll and other transactions you have in your business will generate supporting documents such as invoices and receipts. These documents containrepparttar 117932 information you must record in your books.

It is important to retain these documents because they supportrepparttar 117933 entries in your books and on your tax returns. You should keep them in an orderly fashion and a safe place.

Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips and cancelled checks. Generally, it is a good idea to keep your supporting documents in file folders in designated categories. For example, if you write a check to Joe's Office Furniture and recordrepparttar 117934 expense as "office supplies", thenrepparttar 117935 receipt should be placed in a folder marked "office supplies".

The Art of Bartering for Web Services

Written by Marc McDonald

Do you need a specialized task performed for your Web site? Such as a new custom logo? Or a specialized script? Or a new database? Before you reach for your checkbook to pay a commercial company to dorepparttar work, consider bartering forrepparttar 117915 project. Overrepparttar 117916 years, I've found that it's possible to get virtually any sort of specialized Web task done for free, via bartering. All it takes is some legwork and creativity. My first barter deal arose a couple of years ago, when I needed a site of mine translated into Spanish. Initially, I explored several ofrepparttar 117917 Web's commercial translation services. However, after I did some legwork, it transpired that a neighbor of mine was professionally fluent in Spanish. He was also a newbie torepparttar 117918 Net and was eager to get a Web site up and running. We bartered a deal: in return for him translating my site, I guided him throughrepparttar 117919 process of setting up his Web site. Since then, I've bartered countless deals for various projects for my sites. And, as a result, I've been able to get a lot of vital tasks completed for free that would have easily cost thousands of dollars had I simply boughtrepparttar 117920 services from a commercial company. What'srepparttar 117921 best way to get started in bartering for Web-related work? First of all, consider your strengths and areas of expertise as a Webmaster. Many successful site owners, by necessity, are capable of doing many types of tasks onrepparttar 117922 Web, from writing HTML to promoting their sites viarepparttar 117923 search engines. However, most Webmasters have at least specific area in which they excel. Perhaps they're proficient in creating graphics. Or maybe they have strong writing skills. Or perhaps they're an HTML guru. If you have at least one Web-related area in which you excel, thenrepparttar 117924 odds increase that you'll be able to leverage that skill in successful barters onrepparttar 117925 Web.

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