When starting a small business, taking the time to set up your recordkeeping system properly, right from the beginning, will save you time and money down the road — and could make the difference between success and failure.
Certified public accountants (CPAs) are experts in small business finance including taxes, financial reporting, business advisory, personal financial planning as well as bookkeeping and payroll processing.
According to CPAs, good recordkeeping preparation and planning can:
• Make tax preparation easier. Back-up documentation may save you taxes, interest charges and penalties if the Internal Revenue Service (IRS) ever questions your return.
• Allow you to comply with multi-state taxes, such as sales taxes (including internet sales) and payroll taxes.
• Give you a better handle on your overall financial position, how your business is performing and help your CPA identify financial and tax planning opportunities.
• Create efficiencies throughout the business by spending less time locating documents and information.
• Provide your successor with a roadmap to your financial affairs if you die or become incapacitated.
