Monday, July 6, 2009

Quick Tips: Small Biz Tax Prep and Keeping Your Fees Low!

Reading Diana Ransom's article, Quick Tips: Small Biz Tax Prep on the SmartMoney Small Business site inspired me to take a few of her thoughts and expand upon them.

As a CPA, here are a few tips to help keep your accounting fees as low as possible:

1) Opt for QuickBooks over Quicken, Peachtree, any industry-specific accounting programs, or any lesser-known accounting programs. Today, just about every CPA out there is at least familiar, if not well-versed, with QuickBooks and we can simply import your data into our system. This eliminates the data-entry portion of our services and allows you to only pay us for our planning and tax preparation.

2) When filing your expense receipts, keep them in two separate envelopes:
Envelope #1 - Everything you paid for with cash, a personal check, a personal debit card, or a personal credit card

Envelope #2 - Everything you paid for with a business check, business debit card, or business credit card

This way, all you need to do is take Envelope #1 to your accountant at the end of the year (he will already see all expenses in Envelope #2 when reviewing your business credit card & bank statements.

3) If your business is inventory-intensive, do not rely on the QuickBooks inventory module. It is by far the weakest component of the QuickBooks program. Your best bet is to track inventory through separate software or use a program that interfaces with QuickBooks, such as Fishbowl.


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