How to Set Up Easy, Efficient Bookkeeping

Probably one of the hardest things you are going to have to do when you begin your new Homebased Business is decide to "be the bookkeeper."

"What? Why, I don't know the first thing about ‘bookkeeping'!"

And believe me, as a business owner your days of filling out the "simple Income-Tax form" are over! Being a business owner, especially a Homebased business owner, your life has just become somewhat complicated.

"Is there an easy way out of this mess," you ask?

Why yes, as a matter of fact, there is.

First, get a notebook and put it beside your telephone. Now record carefully every business call you make and approximately how long you talked on that business call. This gets you a percentage of your telephone bill as a deduction.

Next, get a pocket note pad and pen, put them in your car, and record the start mileage, destination(s) and finish mileage of every business trip. This gets you a percentage of your automobile and automobile expenses as a deduction.

Next, get two sets, of two different colors, of 12 large envelopes. Label set 1 JAN OUT thru DEC OUT, and then label set 2 JAN IN thru DEC IN. During the course of the year, every time you have a business expense put the receipt in the appropriate monthly OUT envelope. During the course of the year put a copy of the receipt or sale or product order confirmation in the appropriate monthly IN envelope.

Finally, the ultimate part of your Homebased Business Tax Plan: Do you have a personal income tax preparer. And no, H&R Block simply does not qualify here (sorry, H&R, this is my opinion, based upon a lifetime of stories and experience.). If you do, you're home free, and if not….

Perhaps the most complicated part, now run through your mind all the people you know. There's a very good chance that you actually know a "Tax Accountant." Wouldn't that be nice? But if you don't, you are going to need to find one --- or spend the time to become one yourself.

You can try the yellow pages or the white pages, but I'd suggest you contact everyone you know and take it from there. Surely at least one of your many friends or acquaintances will use the services of a private tax person. Success --- or --- success. If you find one, well and good, and if you don't then you begin your networking career by networking to find a tax man. Once you have him or her, you are now ready for all the slings, arrows and pitfalls Internal Revenue can send your way.

Just work your Homebased business, begin making money hand over fist and you're laughing all the way to the bank.

Article Source: http://www.businesshighlight.org/