An essential part of business bookkeeping is saving and recording all your receipts. If you're usually lax about tending to details, then one of the first habits you should develop as an entrepreneur is saving receipts and dealing with them in a timely manner. This saves a lot of frustration at tax time since every entry in your books needs some sort of documentation to back it up. Plus, by having all your receipts, you could pay less in taxes.

Many small business owners assume that the financial side of their business isn't significant enough to warrant the hiring of an accountant. However, many small businesses will also fair in their infancy, and few grow to be the large businesses that they could be. A lack of proper accounting is one of the main reasons why such businesses fail. One of the most problematic aspects of accounting is tax accounting. Even for small business, poor understanding of taxes and the impact they have can be fatal.

Starting a small business is all about exploration and a bit of trial and error. So, as a new business owner, you try to do as much as you can on your own, including your payroll. However, while handing the task on your own might seem more cost-effective and even easier, there are all sorts of mistakes you can make. Learn the true cost of DIY payroll for your small business.

When your small business starts growing exponentially, it can be challenging figuring out when to begin outsourcing your payroll duties to free up your time for other more important things. While every business is different, here are two signs you need to contract out your payroll responsibilities to another company. Your Business Expands Into Other States Expanding a business into other areas is great because it can open the doors to numerous opportunities.

Many businesses are undermined by products that underperform and that should be removed from the market. Often, these products continue to be released for sentimental reasons or because the company believes that the product will eventually become successful. Fortunately, with the help of good accounting, you can determine when it is time to discontinue a product. Assessing the Product's Cost One of the challenges of determining whether a product is profitable is to determine how much it costs.

The Tax Cuts and Jobs Act (TCJA) of 2017 constituted one of the most sweeping tax reform laws in nearly three decades. But while many taxpayers are excited to take advantage of lower tax brackets and higher standard deductions, those in states with high property tax rates are concerned about the new cap on deductibility of state and local taxes (SALT). In response to this concern, several states, including New York and New Jersey, have enacted SALT workarounds for the 2018 tax year—but a recent IRS notice may have put the kibosh on any attempts to reduce taxpayers' federal tax liability.

As a small business owner, there are many regulations that you need to be both aware of and attentive to. One of the most important is the money laundering laws. Money laundering is the process of introducing cash from illegal transactions into a legitimate financial system to make it look as though it's legitimately earned money. Your company can be held criminally liable for money laundering that happens within your business, so you need to know how to prevent it and watch for it.

Running a small business can prove challenging in many ways, and one of the top challenges business owners face involves their bookkeeping efforts. Tracking your sales, income, expenses, and everything else takes time and requires organization, which is why you may want to consider hiring an accounting firm to do this for you. Here are four of the top benefits you will receive if you outsource this part of your business to a firm that offers accounting services.

When April rolls around, everyone stresses out because that means that it's almost tax day. And even though some people end up with a hefty tax return to spend on fun things, other people end up with more paperwork on their desk than they know what to do with, which can often result in you making mistakes on your tax return. If you have recently been audited by the IRS and they are claiming that you misfiled something or that you lied on your tax return, then you may not know what to do.

In a typical year, many individuals find themselves incurring a financial loss due to some type of unexpected event. In past years, tax filers with an uninsured casualty or theft loss could usually take a tax deduction for the financial setback. The tax rules for deducting a casualty or theft loss have changed, however, resulting in fewer tax filers with deductible losses. Before passage of the Tax Cuts and Jobs Act in 2017, most individual tax filers were eligible to deduct a casualty or theft loss.