It’s the last business day of the year. I’d suggest you start getting all your tax stuff in a folder to hand over to your tax professional. (We are ready and willing to help you ☺ ).
I lost a client today. No, this loss won’t really affect our bottom line. (OK, everything affects your bottom line, but this client contributed less than 0.0X% to our gross.) But, that’s not the point. I lost a client today. It’s personal. It’s because of something I did not do- not even something I did. Something I thought was helping the client- but obviously, I was wrong. Continue reading I thought everything was just right…
It’s time- you finally realize that what we’ve been telling you is really NOT optional. Maybe even the IRS has just audited you- and that’s a lousy way to find out we’re right. Little scraps of paper don’t impress the IRS. If you are running a business, whether it’s incorporated or not, you need to have an accounting system. Yes, if your business is small enough, you can use a spreadsheet. But, really that takes more time than you think. Instead of using a spreadsheet, you should at least use Quicken Home and Business. It only costs $ 75 or so- and you can invoice and track payments with it, too. If you have inventory, then you probably need QuickBooks or Microsoft Accounting programs. If you are a lawyer, then PCLaw or Clio make more sense. And, since today is already well into the year, you are going to have to enter AT LEAST all the transactions for this fiscal year (whether it’s calendar or not, it needs to match how you report your data to the IRS). No, you won’t get them all entered today, but you should do so as soon as possible- as well as keeping all current entries in the system you chose. (You may elect to not enter previous years, and there are some good reasons for doing so, into this system, as we have reported earlier this month. It probably makes sense to use a spreadsheet that matches the format your chosen system employs, so you can compare data from year to year.) Entering this data will let you maintain accurate profit and loss statements, sales tax reports (if necessary), bank reconciliations, and accounts payable/receivable records.
This past weekend, I had the opportunity to share my grandson’s special day- his second birthday party. He was amazing. (What? You expected a grandfather to say something different?) He was happy, he was generous, he was patient, and he was verbal. He would run around the house (one of his favorite past-times), announcing “I am running around”. He announced what he was going to do next- play with his fire truck, play with his plastic dog, or dance. He made sure everyone knew what he planned to do.