Starting an Online Business All-in-One For Dummies®, 3rd Edition

Chapter 4: Accounting for Taxes (and Then Some)

In This Chapter

• Keeping up with IRS expectations
• Tracking your profits and losses
• Finding software to make accounting a snap (or as close as it gets)
• Choosing a professional to ease your mind and protect your pocketbook
• Paperwork: Deciding what stays and what goes — and when

Unless you have a penchant for numbers, along with a love of crunching them, accounting is probably the least fun part of owning a business. Even so, we also recognize that it's one of the most necessary business functions. Why? It boils down to these two issues:

• Taxes: The Internal Revenue Service (IRS) demands that you keep accurate records of the monetary side of your business. That way, you're sure to contribute your fair share of taxes to Uncle Sam.
• Profitability: IRS aside, you need to understand how well (or not so well) your business is doing financially. Then you can make good strategic decisions for its future — and yours!

Dread it as you may, you have to embrace accounting. Okay, perhaps not embrace it, but you can at least learn to appreciate its value and commit to keeping up with it. To help prepare you for that financial road ahead, we start by introducing you to some basics of accounting. Before long, you may even look forward to balancing your checkbook. (Hey, anything is possible.) If you find that you just can't hack the accounting life, we also advise you on how and when to choose a professional to help you out.