Unfortunately I see many start up businesses fail, it's not easy therefore I would like to share some hints with you.
Let's be honest, the most difficult part of running your own business is NOT serving the customers, the fore ever ongoing smile on your face, the installations, preparing the orders, the customer service, returning the phone calls, it is....
"THE ART OF TAXATION"
It's YOUR responsibility that all of the numbers in your book keeping line up with each other, it's NOT your CPA accountant that create the numbers, it's YOU!
- Have adequate support for your tax return!
- Keep all your receipts!
- Know what you can deduct and what not!
- Have a close contact with your CPA accountant!
- Make note of your monthly expenses, don't put your finger up in the air and say: " I think, its about....." this is a NO NO!
- Understand that you are in business to make a profit, not a loss!
- Understand when you can deduct a meal and when not!
- Understand that a new business does not make a profit right the way, but that you need to make a profit in order to survive, so you can not run a business from a 20% mark up, you will NOT make it!!
- Deduct Dutch treat meals, ask your CPA about this!
- Have a clear and straight forward picture about the purpose of your business. State the exact of the business discussion or activity, be specific!
- Make sure your tax return is neat, don't fill it out during your lunch break, it will get dirty spots and will have it's negative impact! It has to be easy to read. Legible tax returns create an impression of attention to detail!
- Inform the IRS about your address change, it shows you being on top of it. File form 8822, any time you move!
- Break income and expenses into small segments!
- Make sure to sign any check or tax return, NO signature is the biggest "RED FLAG"
"Bullet Proof" is the art of doing business, stay in business, receive on an ongoing
base referrals, and create happy customers, happy CPA accountant and a
smiling IRS.
Good Luck to all the new and fresh business owners. Don't give up and run away
from the battle field, simply be tough and you will make it. It's worth it!
