Helpful Bookkeeping Tips
Use Bookkeeping Tips To Help You In An Audit
Audit bookkeeping tips tells you – Don’t lump all your expenses into one category like “Marketing,” Use several other categories too.
Red flags go up when you only have two (2) office expenses in your business – “Office Expenses and Marketing expenses,” for instance.
What else can you list an expense under?
Not only will you benefit from expanding your knowledge, but you will see where you were missing legitimate deductions you weren’t taking before.
Bookkeeping Tips: Use a bokkeeping Journal, or examine your chart of accounts on your accounting software, or get a good book and ask your accounting professional to have a cup of coffee with you to go over a few bookkeeping tips on your tax notes with you!
Audit flag – A business that produces donuts and lists $2,000.00 under ‘Office Supplies’ and $10.00 under ‘flour.’ Same rule applies to internet marketing with only expenses under ‘marketing.
Bookkeeping Tips – Research and development, printing and reproduction, postage and delivery, . . .
BOOKKEEPING TIPS: Bookkeeping Tips to Avoid Theft – Never disclose full account numbers on a computer accounting system.
If you have online access to your computer, you run the risk of hackers getting your confidential information. When entering your bank account into your chart of accounts for QuickBooks – Only enter the last 4 account numbers – For instance, pick “New Account” then pick “Bank” then enter your new account on the account name line as: “8367-USA Bank”
Bookkeeping Tips – Entering the numbers first speeds up your data entry too!
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BOOKKEEPING TIPS: Bookkeeping Tips That Pay Kids
Take advantage of paying kids for age appropriate tasks – as early as birth!
Use them as models in your website videos and pay them as models.
You can put away $600.00 a year for their college or first car – TAX FREE, and if you double whammy that by using a medical savings account – fabulous!
Five-years-old is NOT too early to begin teaching kids about money-This is a HUGE benefit for them if they already have $3,000 in a bank account that they can watch grow and monitor-with your help!
Bookkeeping Tips: Bookkeeping Tips to help you stay Audit Proof
You may need to defend your deductions to the IRS. Stay Prepared.
For example, If you’re having an open house or party, Have your invitation printed so that it states your business reason – “XYZ Company anounces New Product Launch.”
Take some pictures of your guests inspecting your new product, or even a video.
Have each guest write their name in your guest book or instead, you can even monitor and track your RSVP information so that you can prove a correct and accurate distribution of expenses between employees, independent contractors (IC’s), clients, and potential clients.
And make sure you list family members and friends who will not all be deductible – Unless you use them as caterers and wait persons or host/hostess/greeters/ribbon cutters . . .
Bookkeeping Tips – See if you qualify for these Tax Shelters!
Bookkeeping Tips – Avoid IRS Red Flags!
Bookkeeping Tips – Not all deductions qualify for 100% write off – Know what those are – For instance, meals expenses are usually deducted at 50% of the total cost of the meal. Certain restrictions can either increase that write-off to 100%, or decrease it to 0%. Ask your accounting professional for bookkeeping tips and advice on the best uses of your expenses for your specific business entity, business structure (Corporation, LLC, partnership, . . . ) and your money.
There is no way to get around the fact that QuickBooks is used by over 80 Percent of the tax paperwork industry.
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