Bookkeeping helps maintain accurate records of a business’s financial transactions. It’s essential for tracking income, expenses, and ensuring compliance with tax regulations.
Ideally, bookkeeping should be done monthly to ensure accuracy and timely financial reporting.
Key reports include the Balance Sheet, Profit & Loss Statement (Income Statement), and Cash Flow Statement, providing insights into your business’s financial health.
Accurate financial reporting helps in decision-making, tracking performance, securing financing, and preparing for tax season. It also ensures transparency for stakeholders.
Federal tax returns are typically due on April 15th each year. However, you can file for an extension if more time is needed, extending the deadline to October 15th.
Yes, ordinary and necessary business expenses such as rent, utilities, and supplies can be deducted. Always keep detailed records for deductions.
A tax credit directly reduces the amount of taxes you owe, dollar for dollar. A tax deduction reduces the amount of your income that's subject to tax, lowering your overall taxable income.
Any taxpayer can file for a tax extension by submitting IRS Form 4868. However, the extension only applies to the filing deadline, not the payment deadline.
If you don’t pay your taxes by the deadline, you may be subject to penalties and interest. The IRS recommends paying as much as you can by the due date to reduce these penalties.
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