Archive for September, 2009

What Business Records and Accounting System Are You Required To Maintain?

Wednesday, September 16th, 2009

All business owners are required to maintain a system that accurately records all of the business transactions and provides related financial reports, including the results of the business operations.  Specific records and reports must also be maintained to support the reported transactions and provide documentary evidence to support the daily transactions, financial statements, and tax returns.  These reports will also provide the information which an auditor will require. 

The accounting  reports will include the Balance Sheet, the Income Statement (Profit & Loss), the Statement of Cash Flows, the General Ledger, and payroll reports.  The business owner should use all of these reports to determine the financial course of the business (where it was in the past, where it is now, and the projected direction that is in progress now).  If you do not have the background or knowledge to analyze and comprehend the information in the financial reports for your business consult with someone who can assist you, i.e. your CPA, a  mentor, an associate, or colleague, etc.

The broad IRS guidelines for these requirements are presented below.  I would also recommend that you read the related IRS publications which provide more definitive guidance: (more…)

Are You Planning To Buy A New Car, Truck, Motor Home or Motorcycle This Year?

Tuesday, September 15th, 2009

Congress and the Obama administration have created another 2009 tax deduction that will allow you to have a new vehicle this year and do your part to stimulate the economy.  If you meet the requirements you can deduct the sales or excise taxes that you are required to pay for the purchase.  The sales or excise tax deduction will either increase your itemized deductions if you itemize, or your standard deduction if you do not.  If you have questions, contact either your tax preparer or CPA.  Here are the details from the IRS: (more…)