The Suburban Times

A community bulletin board for Western Pierce County.

  • Home
  • To Know
  • To Do
  • To Ponder
  • Obituaries
  • Calendar
    • Submit an Event
  • Subscribe
  • Advertise
  • More
    • Share your story
    • Submit an Event
    • Contact

The IRS and Bookkeeping Basics

February 1, 2018 By Don Doman

The first time I was audited I was worried about perhaps paying an additional amount. The IRS agent in my basement office flat out told me, “Oh, you’re going to pay more. I’m just here to figure out how much.” I told him, “I’ve been pretty careful.” He then picked up a file of receipts to run a total and compare notes. The first receipt was bogus. It was from a purchase several years before. In wasn’t intentional, but my confidence was shaken.

“The only two things that scares me are God, and the IRS.” – Dr. Dre

If you are a small business, you can probably figure out how to fill out the forms and total up what you are going to have to pay. The problem is that you don’t know all of the ins and outs.

“The only two things that scares me are God, and the IRS.” – Dr. Dre

“If you are a start up, it is advisable to spend a little time in getting in-depth knowledge of all the rules. If you are smart enough to break the codes, you can easily get a benefit of tax saving through your investments. In case of small businesses, you can file Schedule C, which allows you to reflect your calculation of Costs of Goods. It helps in reporting and documenting the amount of your business profit and the cost kept behind making the purchase of the goods. The whole review of the difference between the two costs of purchase as well as of selling will reflect the actual amount of tax, you have to pay for.” – Achal Mehrotra in the article Business Tax Return – All You Need to Know

Right now you have a partner that will help you profit, President Donald Trump.

Many small businesses can’t afford to have an accountant all year round. Most get by with a bookkeeper. Often bookkeepers are barely qualified. Then the details are given to a CPA. If you have a thriving business or operating a business that looks like it will produce a profit now and for sometime in the future, then you need to talk to a CPA well into operation. Dan Nicholson founder and CEO of Nth Degree CPAs always asks the question. “What if you had a financial expert helping you optimize your business and family financial situation all year long?” Having a financial expert steer you in the right direction and making suggestions about saving money on taxes is always a great way to go. Dan has worked in finance and accounting roles at Clark Nuber, UPS, WaMu, as well as Deloitte and Touche’s Audit and Enterprise Risk Services practices where he was primarily responsible for auditing both the financial statements and IT internal controls around the Treasury cycle at Microsoft. You can check out Dan’s blog for all kinds of money saving and money making suggestions – www.nthdegreecpas.com/blog/

If you want to do everything by yourself then you need to get some basic information – IRS Guidance in Plain English – www.irs.gov/newsroom/irs-guidance, but be prepared to face an audit or two like I did.

If you have a relative who has an accounting degree, and you think they are trustworthy and brilliant, then go for it. Otherwise, you might consider talking to Dan. I did. He’s a nice guy . . . and knows what he is talking about. Right now you have a partner that will help you profit. President Donald Trump has lowered the corporate tax rate and has made other changes that can help almost any small business, as well.

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • More
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Tumblr (Opens in new window)

Related

About Don Doman

Don Doman: Professional writer and author. Ideas and Training - Human Resources/business training products for modern business. PublicDoman - Video production, internet video, website construction and online marketing and social media. NW Adventures - Fun places to visit in the Pacific Northwest: Great Restaurants, Lodging, and People. The Doman Directories - Business directory listings for many categories in Tacoma, Pierce County, and Washington State. FindItWashington - Local search engine for Washington State.

Comments

  1. bob hammar says

    February 3, 2018 at 9:39 am

    Small business people sometimes are not willing to pay for Good Financial help but that expense is the key to success. For 30 years I had my P & L on my desk on the 5th day of every month. I was very blessed to have an older brother who was a VP and Controller of a mega billion dollar Corp who was my advisor on all matters financial. I was never audited by the IRS in 30+ years of business. If your sick you seek out the best doctors but when your company is sick the same rule somehow doesn’t apply.

  2. Don Doman says

    February 3, 2018 at 2:14 pm

    Bob,
    Words of wisdom . . . words of wisdom. Thanks for writing. You should have been my older brother.Thanks for being a dedicated reader.
    Don

Top Stories

  • Some Pierce County restaurants open dining rooms under new open-air rules
    Some Pierce County restaurants open dining rooms under new open-air rules
  • What's Next, Tahoma Beer? - Name Changes . . . for the good
    What's Next, Tahoma Beer? - Name Changes . . . for the good
  • Lakewood Police Officer Fires Weapon On Duty
    Lakewood Police Officer Fires Weapon On Duty
  • More COVID-19 vaccine eligibility and access points to end the pandemic
    More COVID-19 vaccine eligibility and access points to end the pandemic
  • Mass COVID vaccination sites planned for Pierce County
    Mass COVID vaccination sites planned for Pierce County

Become a better informed citizen.

Join over 30,000 readers each month and get real-local news and information direct to your inbox, Monday-Saturday.


Recent Comments

  • Gilbert Miller on Selden Family to receive Larry Saunders Service Award
  • Don Doman on What's Next, Tahoma Beer? – Name Changes . . . for the good
  • Don Doman on What's Next, Tahoma Beer? – Name Changes . . . for the good
  • Mona Peterson on What's Next, Tahoma Beer? – Name Changes . . . for the good
  • Don Doman on What's Next, Tahoma Beer? – Name Changes . . . for the good

Contact Us

The Suburban Times
P.O. Box 39099
Lakewood, WA 98496

Ben Sclair, Publisher
253-312-1804

Stephen Neufeld, Marketing Executive
stephen@thesubtimes.com

Copyright © 2021 The Suburban Times • Log in • Privacy Policy

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.