When you own a business, there are many items that you need to keep records of. Your sales and income as well as any losses you may have incurred during the year are a small part of it. All of your financial records will need to be turned over to your accountant at years end so that they may put together your income tax forms to be submitted. It is important that your records are accurate and using a good software program to record all of your business activity is a good way for you to do this.
What Should Be Included in Your Records
If you have inventory, a record of your sales as well as any purchasing must be kept. The accountant will need this information to use as a basis for your taxes. You must also keep detailed records of any employees you have on your books. This includes any hires you may have during the year as well as any employees you have let go. They will need to also have records of taxes you have paid on behalf of your employees, such as, social security and federal tax. If you have had any building damage and repairs have been made, this will also need to be recorded on your taxes. Your accountant will advise you of what they need to submit.
If You Do Business Overseas
International trade is a very specialized area of the tax law and you should make sure you hire a good international tax CPA to put your business taxes together. There are many different laws that pertain to international business and a specialist will be able to submit accurate tax filings for you. You should also look to install the right software programs that will be able to keep your records for this type of business. Having all your documentation on a computer will make it much easier for your accountant to file your returns.
No matter what type of business you are in, keeping good records will help you not only to see what your profit or losses are at the end of the year but will help you to compile your information for your tax accountant. Most businesses today are computerized, and this makes it a faster process when your accountant does your taxes. Handing over paper documents will prolong this process. The fees you pay to your accountant will cover their filing your tax documents as well as give you support if your business receives an audit. International accountants will generally cost more for these services. Many big businesses will hire a team of accountants who will constantly work on all of the companies records. Smaller business will typically hire private accountants to work on their taxes. Trying to do taxes on your own if you do not have the experience and knowledge can be very detrimental to your business and it is recommended that you hire an accountant. The cost will pay for itself and give you peace of mind.