User:Millingtown291

It's a new year and as a entrprenuer, you're probablysearching for to better your small business accounting, to not get reamed with taxes and to improve. There are a variety things you can do in order to make tax time go more smoothly. I've put together a few things here to think about as you start off the new year and make your way through the tax season?

Family Businesses Should Always Have a Separate Bank Account

Should you ever find that the IRS is taking an interest in you and your company and start looking closely, you need to realize that they scrutinize over every little singledetail of money changing between hands between family members when there's a family business involved. So if your business is a family business, ensure to use separate bank accounts so there's no possibility of being accuse of fraudulent spending. You should have an account for your personal finances and one for your family's small business. If you do this, you'll also make any future financial statement analysis easier, as the cash flow is much more defined.

Suspicious Activity with Independent Contractors

If your small business doesn't have many employees, the IRS is pretty quick to assume payments you make to independent contractors are fraudulent. So for any payments you issue to contractors, make sure that you're getting a 1099-MISC from the contractor, as well as a 4669 (Statement of Payments Received). If you are proactive in making certain you have all of this documentation then you make it easier on yourself to prove to the IRS all your payments have been legit.

Tracking Receivables that are Overdue

Although some people may take offense, this is something that every money smart small business owner will do? when a check is reported to be on the way from a client or customer, politely request that they provide you with the check number and the date they wrote it. That way, you can track it easier and you have record of it on hand.