What is Bookkeeping and How Do You Do It?
- Bookkeeping involves keeping detailed records of your business’s income, expenses, and other financial transactions.
- To get started:
- Track all financial activity, including sales, invoices, and payments.
- Use accounting software (like QuickBooks or spreadsheets) for better organization.
- Record all transactions consistently to avoid errors and ensure accurate tax reporting.
Should You Bookkeep Daily, Monthly, or Yearly?
- It depends on your business size and activity, but here’s a guideline:
- Daily: Record transactions to keep up-to-date and avoid missing important expenses or income.
- Monthly: Reconcile accounts (bank statements, credit cards) and review financial reports.
- Yearly: Finalize all records before preparing taxes and provide clean financial summaries for tax filing.
Which Receipts Should You Keep?
- Keep receipts and records related to:
- Business expenses: Equipment, software, advertising, office supplies, rent, etc.
- Income: Sales receipts, invoices, proof of deposits.
- Tax-related items: Charitable donations, travel expenses, meals (if applicable for business purposes).
- Digital copies are acceptable but make sure to store them securely for at least 3-7 years, per IRS rules.
Do I Need to Pay Taxes If My LLC Didn’t Make Money?
- If your LLC made no income in the current tax year:
- Federal taxes: You may still need to file a return depending on how your LLC is taxed (e.g., sole proprietor, partnership, S-Corp).
- State taxes: Some states require LLCs to pay annual fees or minimum taxes, even without profit (check state requirements).
- Filing ensures compliance and avoids penalties.
For more information see:
Please feel free to reach out with any additional questions or concerns you may have and
thank you for attending! Please have an amazing rest of your day!
**Say "Thanks," by clicking the thumb icon at the bottom of the post.
** Mark the post that answered your question by clicking on "Mark as Best Answer."
Please feel free to reach out with any additional questions and
thank you so much for attending!
Please have an amazing rest of your day!
Terri H.
**Say "Thanks," by clicking the thumb icon at the bottom of the post.
** Mark the post that answered your question by clicking on "Mark as Best Answer.”
