In initial two parts of this article I talked about some of steps necessary in starting a business; Licenses and Permits and Form of Business Entity.
I would like to conclude this article with a mention of Accounting and Taxation needs of your business.
Accounting / Bookkeeping
The business entity concept provides that accounting for a business or organization be kept separate from personal affairs of its owner, or from any other business or organization.
This means that owner of a business should not place any personal assets on business balance sheet.
The balance sheet of business must reflect financial position of business alone. Accordingly, two of first things you should do is;
- Open a separate bank (checking or savings) account for business.
- Setup an accounting program for your business. Whether you do it yourself, buy accounting software, or hire an outside source to take care of accounting and taxation for you.
Accounting and Tax Software
Many small businesses, especially home-based businesses, do their own accounting and bookkeeping.
Small businesses are also now exploring idea of using a tax software program to prepare their returns.
Software packages offer convenience, good prices (in most cases) and organization, but can they really replace personal touch of an accountant or CPA?
The use of tax software is a personal decision for each business to make.
=>Accounting Software For Small Business - Every small business needs to know where money went and is going.
Your accounting system may be as simple as using a spreadsheet (Excel, Lotus, etc.), or you may need to purchase accounting software.
There are many accounting programs on market these days, from very inexpensive and simple to very expensive and complex.
These top selling accounting software programs simplify your small business accounting tasks, and provide all reports and tools you need to effectively use your financial data.