When it comes to running a successful business, having the ability to pay your employees is critical. Since many small business owners don't come from an accounting background, preparing employee payroll can be a challenge.
Here are three tips that you can use to help streamline your small company's payroll preparation in the future.
1. Consider switching your employees to a salary.
If you want to eliminate a lot of the mistakes that can be made when preparing payroll for your employees, you should consider switching your workers from an hourly rate to a salary.
Individuals who receive a distribution from a retirement account typically receive a Form 1099-R after the end of the year. A copy of the form is also provided to the IRS. Form 1099-R contains a distribution code without an attached explanation, so it is essential that tax filers examine the code further to ensure that the distribution is reported correctly.
Form 1099-R is used to report distributions from several types of retirement accounts, including IRAs, traditional pensions, and 401(k) plans.
As a business owner, you're bound to make mistakes. However, mistakes made with your bookkeeping can have a significantly negative effect on the cash flow of your business and may result in legal or tax problems. Here are two common mistakes business owners make and how you can avoid them.
Being Lax About Petty Cash Receipts
Sometimes you have expenses that are too minute to write a check for or that can't wait for you to grab the checkbook.
As a sole proprietor who is a specialist in your own field, one of the challenges that you can often run into is how to manage your tax responsibilities. After all, your expertise is in your business area, not in tax filings or accounting. One of the best things you can do is to work with a local accountant to handle all of your reporting, account management, and tax filings. Working with an accountant may be the best way to save you money over time, but here are a few things you can consider now to help you reduce your tax liability from the start.
Quickbooks is an accounting software program many small business owners use to keep track of their business finances. Even if you do not own a business, you can still use Quickbooks to get a better grasp of where your money goes every month and where you can cut expenses and pay bills off faster. Quickbooks online is the software program available through multiple sources on the internet. Here is how you can get your copy of the basic software package for free.