Hello, I'm Ron Breckenridge. As a hobby, I refinish broken jewelry I find at thrift stores and pawnshops. The jewelry often features major faults that ruin the structure and finish of that piece. While performing the repairs, I remove a lot of gold and replace it with new materials. The gold I remove sits in a little jar until I can use it again. Every once in awhile, I come across gold I just cannot use. The gold is still good for other purposes, but doesn't work well for jewelry repairs. I save this gold until it fills up another little jar, and then I take it down to the gold buyers. I'm provided with a small stipend depending on its market price, which is awesome. I want to discuss the process involved with gold buying on this site. I will also explore other ways to obtain gold to sell. Thanks.
Owning a small business can be challenging. Not only do you have to worry about providing an income for yourself and your family, but you also have to think about all of the other aspects of the job, such as keeping up with the finances. Making sure you keep accurate accounting records for your business is vital for its survival. Here are three common accounting mistakes small business owners make.
1. Not hiring a knowledgeable bookkeeper.
If you can only afford to hire one additional person to help with your small business, make sure you hire an experienced bookkeeper. With someone who has the knowledge and experience of doing accounting work for other businesses, like the accountants at Danta Chase & Co CPAs PS, you will have a much better chance of ending your fiscal year in good shape financially. If you don't have someone who knows what they are doing, then not only can you end up losing a lot of money, but you could also end up in legal trouble with the IRS if your business's finances weren't reported correctly.
2. Not double-checking the books at the end of every quarter.
Even the most knowledgeable bookkeeper can make a mistake. Unfortunately, all it takes is one small mistake in your books to throw all of your figures off. Rather than waiting until the end of the fiscal year to sit down with your bookkeeper and go over the books, you really should do it at the end of every quarter. Not only will it help you stay on top of how your business is doing financially, it will also help prevent a small mistake from turning into a bigger nightmare for you when it comes time to file tax paperwork at the end of the year.
3. Not keeping track of receipts and other documentation for expenditures.
Not only is it important to keep accurate books for your business's financial success, but you also need to keep proof of any business monies spent. For instance, if your business is a small public relations firm, you will likely spend company money treating potential and current clients to meals and on travel expenses for yourself to attend events related to your business.
As long as you have the receipts and other documentation proving they are legitimate business expenses, you can write them off for tax purposes. If you attempt to write them off without the proof to back you up, you can end up on the bad side of an IRS tax audit.
It is a good rule of thumb to keep receipts for everything that you spend money on when you own a small business. That way, you can back it up in the event that your business gets flagged for a tax audit.
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