Tax law changes happen every year and with those changes we have laws and regulations that can drastically affect your realized income.
A small start-up business usually tries to save money by purchasing an accounting software that promises it will be easy to keep their books. If you’ve been down this road you already know that accounting has a language of debit, credit, depreciation, balance sheets, the list goes on, that you have to know, to make any software work properly. One mistake in that input ripples through the rest of your books creating a loss of time if not a liability in the event of a tax audit.
Does it really cost you more to hire a bookkeeping service?
If you write down the amount of time you are spending in trying to keep your books, versus doing what you do best, your business; you will find you actually are making more money by hiring the service out. This is in just time spent and does not include a bookkeeper doing proper depreciation of equipment, mileage on your vehicle and what you can legally write off in business expenses. That become actual income that stays in your pocket instead of being paid out to the internal revenue service.
Other aspects often missed is quarterly tax payments to protect you from a severe tax bill at the start of a new year as well as fines for not making those payments.
It may at first seem like an expense you cannot afford but when you look at it from a dollars and sense standpoint you realize it is an expense that is critical to your success.