Because my work involves considerable travel,
closely. Fortunately, we seem to be well prepared.
In working with an Accountant, however, I'm told it is
actually rare for small business owners to have adequate
records and details. That astonished me, because keeping
good financial records is essential. For review, here are
a few items to double-check to be sure you're doing it
right:
1. Have a separate bank account, credit card and
accounting system for your business and NEVER mix personal
expenses with your business. Never buy a business computer
and a vacation trip with the same credit card. Never
deposit a business payment to your personal checking
account. These steps cost very little and could save you
heartache and money down the road.
2. Keep every business receipt. You may not always list
it in the right account, and your Accountant or the tax
folks might quibble about whether it's a business expense,
but with a receipt you have hope. Without it, you got
nothing!
3. Never, ever, cheat or cut corners. It just isn't worth
it. In recent weeks I've heard unbelievable stories of
professional and business owners who should clearly know
better, thinking they could either hide income or use a
business expense for personal gain. Statistically, you
might get away with it, but at what cost?
4. Hire and use a great Accountant! Over the years, I've
griped about how much we spend on legal and accounting
advice. Now I know why. Mine has made this thing easy.
Following her advice over the years let us do it right, so
now the stress is minimal. What a bargain!
It's very easy to go into business, and running a business
is easy if you have great systems to track your finances
automatically, effortlessly, and accurately. Those systems
don't "cost", they truly pay off in wonderful ways. Follow
the basics. Trust me, there'll come a day when you'll be
delighted you did!
the tax authorities have questioned my travel expenses over recent years.
I'm told this is a common area for entrepreneurs and professionals
to "cook the books", so the IRS often looks at it veryclosely. Fortunately, we seem to be well prepared.
In working with an Accountant, however, I'm told it is
actually rare for small business owners to have adequate
records and details. That astonished me, because keeping
good financial records is essential. For review, here are
a few items to double-check to be sure you're doing it
right:
1. Have a separate bank account, credit card and
accounting system for your business and NEVER mix personal
expenses with your business. Never buy a business computer
and a vacation trip with the same credit card. Never
deposit a business payment to your personal checking
account. These steps cost very little and could save you
heartache and money down the road.
2. Keep every business receipt. You may not always list
it in the right account, and your Accountant or the tax
folks might quibble about whether it's a business expense,
but with a receipt you have hope. Without it, you got
nothing!
3. Never, ever, cheat or cut corners. It just isn't worth
it. In recent weeks I've heard unbelievable stories of
professional and business owners who should clearly know
better, thinking they could either hide income or use a
business expense for personal gain. Statistically, you
might get away with it, but at what cost?
4. Hire and use a great Accountant! Over the years, I've
griped about how much we spend on legal and accounting
advice. Now I know why. Mine has made this thing easy.
Following her advice over the years let us do it right, so
now the stress is minimal. What a bargain!
It's very easy to go into business, and running a business
is easy if you have great systems to track your finances
automatically, effortlessly, and accurately. Those systems
don't "cost", they truly pay off in wonderful ways. Follow
the basics. Trust me, there'll come a day when you'll be
delighted you did!
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