5 Tips to Save Your Business Money:

– Accelerate deductions at year end. Make purchases for supplies, repairs, advertising, equipment, etc. prior to year end to qualify as expenses.
– Consider setting up qualified retirement plans.
– Reduce or defer year end income. If you are on the cash basis, wait to invoice for services until the end of the year so payment is received in the following year.
– Write-of bad debts. This can only be deducted if your business uses the accrual method.
– Write-off old inventory or adjust carrying costs if you are currently offering the merchandise for sale at below market prices.

For additional business advice, go to www.companyprophets.com

How Long Do I Have to Save My Business Documentation?

How Long Do I Have to Save My Business Documentation?

The question always comes up: how long do I have to save my information and what should I be saving.  To unbury your office or kitchen table, here is a guide to financial record-keeping.

To get started, I recommend you get organized.  Invest in a file cabinet and some folders to keep things separate and easy to find.  For important documents you want to keep, consider getting a small fire resistant safe or a safety-deposit box at you bank.  Backup all your computer files and keep them in safe place as well.  Some documents you need to keep forever such as:

– Tax Returns

– Birth and marriage certificates

– Current passports

– Inventory for insurance records

– Current insurance policies

– Social Security cards

– Stock purchase agreements

– Divorce papers

The bulk of your financial backup, receipts, etc. need to be kept for a minimum of 3 years from when you file the return.  This is how long you are subject to an IRS audit.  However, if the IRS can prove fraud, they can audit back seven years so keep your documentation accordingly.  This backup includes cancelled checks, purchase/sale of any stock, vehicle information and ATM/credit card receipts just to name a few.

When you do decide to discard your paperwork, shred anything that contains personal financial data such as Social Security numbers, PIN numbers or passwords, etc.  Identity theft is growing everyday.

Have questions?  Email us!

5 Business Operating Tips

5 Business Operating Tips:

– Keep business and personal accounts separate – utilize separate checking and credit card accounts.

– Create a system for record keeping.  Keep records organized by filing receipts by expense type or vendor name.

– Keep records up to date in order to understand how your business is functioning.

– Choose you legal form carefully as this can have huge tax implications.

– If you operate in corporate form, make sure you keep accurate and thorough minutes for the corporation.

5 Tips to Save Your Business Money

Everyone loves to save money.  Saving your business money makes you happy.  Here are a few suggestions:

– Accelerate deductions at year end.  Make purchases for supplies, repairs, advertising, equipment, etc. prior to year end to qualify as expenses.

– Consider setting up qualified retirement plans.

– Reduce or defer year end income.  If you are on the cash basis, wait to invoice for services until the end of the year so payment is received in the following year.

– Write-of bad debts.  This can only be deducted if your business uses the accrual method.

-Write-off old inventory or adjust carrying costs if you are currently offering the merchandise for sale at below market prices.

 

For additional business advice, go to www.companyprophets.com

Welcome!

Welcome to Company Prophets which provides guidance to achieve business visions.  We hope you find the information here useful and please feel free to contact us with any suggestions or comments at mike.companyprophets@gmail.com.

Our staff is ready and waiting to help you now!