Uncategorized March 21, 2020
If you are starting a business, your uninvited biggest business partner will be the IRS or the Canada Revenue Agency. They require you to have a organized set of books and records that reflect the business income and expenses you are incurring in your operations.
The second reason you must do bookkeeping certification is so you can have your financials in order for the tax man. You need to be able to provide the exact figures for your revenue or sales and expenses to then be able to calculate how much you owe the IRS.
Let’s try a simple example, shall we? You open your own business with $20,000. Your very first bookkeeping entries would be to debit the account ‘Checking Account’, and credit the account for paid in capital.
Although you may never find exactly what it is you want to bookkeeping courses do there truly is a small home business opportunity for anyone who is willing to put in some effort. Motivation and desire are extremely important if you want to be successful in your quest to work from home.
When hiring new employees or contracting with new subcontractors, make sure they submit a W4 or W9 form. Establish a procedure to receive the forms before their first payment is made. Remember to enter their tax information into QuickBooks when the form is received. This will make preparing W2s and 1099s a less stressful task in January.
Your bookkeeper will benefit because their schedule will be better structured and they can feel confident about freeing up time they may have tentatively penciled in for you. You are dealing with a professional and they will understand.
An excellent set of records is your best defence against an in-depth Tax or VAT investigation because they are so complete, up-to-date and straightforward. The less opportunity you leave for gaps or omissions to occur in your records, the harder these civil servants will find it to claim your records are understated and incomplete.