Ah, TAXES

Yes, ladies and gentlemen, tax time is upon us!

If you are just staring your business or are still in the planning stages of starting a business, do yourself a giant favor and really spend some time planning and researching how you plan on keeping your financial records. Believe me when I say it will save you a lot of time and maybe even a few headaches and tears down the road.

The IRS's website (www.irs.gov) has a wealth of information! Though it may seem a bit overwhelming with all the publications, forms, instructions, and other various items, take a few minutes to really become familiar with the website.

You can go here to find information on starting a business. And here for information on operating a business. And finally, if you're looking to close shop, look here.

If you're planning on operating as a partnership, look here.

Organization is key! I have several 3-ring binders where I keep all my records. While I have heard of the fabled shoebox method of record keeping (you know who you are!), I strongly advise against it for two major reasons:
1. If EVERYTHING is in a shoebox, how do you know how your business is doing? Are you in the red or black? Are your supplies being purchased at the same price as your last order? How much have you spent on advertising this month? This quarter? Granted accounting software can alleviate some of this uncertainty...but only if you use it properly.
2. Accountants don't work for free. If you walk into your accountant's office with a shoebox full of paper work, he/she will either:
a) Laugh. Then tell you to come back later after YOU'VE straightened out your box.
b) Charge you an arm and a leg because it took him/her hours to sort through the chaos.

Save yourself time and humiliation by being organized from day ONE!

If you choose paperless record keeping, always have the information backed-up on a CD or in a journal. I learned this the hard way. I had to spend days reentering information in the computer (luckily, I had everything in my 3-ring binders, but a CD would have saved a lot of keyboarding).

Next...Quickbooks and other accounting software....