Chapter 4

Accounting for Taxes (and Then Some)

IN THIS CHAPTER

check Keeping up with IRS expectations

check Tracking your profits and losses

check Finding software to make accounting a snap (or as close as it gets)

check Choosing a professional to protect your pocketbook

check Deciding what paperwork stays and what goes

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, ...

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