Accounting Tips For The Rest Of Us
Everyone falls into 1 of 2 categories. Either they dread accounting, or have learned to love it. Roughly 15% of the population have learned to love it. The rest of us? Well…you know. We gather our receipts grudgingly every March, and drag ourselves down to H&R Block or our tax accountants office every April.
I hope you have registered your own small business. It’s one of the greatest sources of tax deductions. I had a friend who ran a small web design business off of his kitchen table. One night his roof sprang a small leak in a rain storm, drenching his kitchen, including his laptop. He called a 24-hour company, and he was in no position to negotiate the quote. He kept every receipt and got a sizeable refund at tax time. Bottom line? Start a small business in your spare bedroom and keep every single penny accounted for. You’ll thank me at tax time.
You will find useful strategies for changing the dreaded March whirlwind of receipt collecting, last minute bookkeeping and the stress that comes with getting ready for tax time.
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Want to develop a good accounting practice habit right now?
Get 12 envelopes. Label them each with a month of the year. And develop the habit that every single time you spend a penny, the receipt goes in the envelope. This organizing of monthly expenditures makes book-keeping 80% easier, and will save you time and money at tax season. Its old school plain jane simple, but extremely effective.
The business philosopher Jim Rohn once said, “All capitalists should pay taxes.” He was referring to the need to keep the golden goose alive in America so we could continue to develop our income streams, create economies, move goods and services and employ people. He fondly spoke of advising young kids to have 2 bicycles, one to ride and one to rent. In this generation it has never been easier to create your own enterprise. The boom in technology has made this possible. Part of the job of a good capitalist or entrepreneur is to keep good records, leverage competent tax advisors, and keep the golden goose alive. Yes, this does mean paying taxes.
In the meantime, please enjoy this humorous video about the whimsies of accounting. If you can smile when all around you are losing their minds, you have won the battle. Here is the Top 10 Things I’ve Learned From Being An Accountant.