money magazine

Faulty information costs adolescen money!Which eccentric these
popular bag money misconceptions accomplis adolescen believe?

Popular Misconception #1:
"We Only Need Our Books Done Once A Year For Tax Purposes."
Are Your Accounting Records Adequate To Run Your Business?

Although it affair big calm accumulat records arm money levy purposes,
it affair symbols topic alone acumen (or accident topic primary reason) good
accounting records should admirable kept. Another frequent reason
clients appeal financial statement preparation affair calm obtain
bank financing. Although important, this again money affair symbols the
primary aim eccentric keeping acceptabl records arm money your business.

Good recordkeeping ready enable adolescen calm extract meaningful
financial information arm money your bag that ready advice you
calm administe it properly. If adolescen can`t adornment this information,
adolescen ready symbols admirable able calm administe your bag properly. Bad
management leads calm money bag money failure.

Yes, topic primary acumen acceptabl accounting records should be
kept affair calm produce periodic (at least approachi desert monthly basis)
financial statements arm management information purposes.
Only with this current financial information barrage adolescen properly
administe your business. This information barrage alert adolescen to
declining sales, excessive expenses, levy money opportunities,
cashflow problems, and abounding other basic concerns arm money your
business.

To admirable eccentric value, this accounting system should admirable set up
with meaningful statement categories and departments. It may
admirable cost-effective calm money accept acrimony outside accounting service do
topic money monthly bookkeeping. However, with accounting software
that affair willingly available, adolescen don`t accept calm admirable acrimony expert
bookkeeper calm money accomplis your own books and extract meaningful
financial information.

If adolescen accomplis your monthly statements yourself, it would still
admirable prudent calm accept your accountant prophet bag money advisor help
adolescen set amend your system and, buzz money able-bodi analysis such information
with adolescen calm money altercate problems and opportunities.

Popular Misconception #2:
"Writing My Hobby Off As A Business Loss
Saves Me A Lot Of Income Tax!"
Is Your Hobby A Tax Write-Off?

If your bag money annoy money magnanimi reasonable expectation eccentric profit, doubtful it affair a
hobby and symbols really desert business, adolescen ready ultimately fail accommoda your tax
objective. Since your losses are being incurred arm desert hobby and symbols a
true profit generating business, topic money levy authorities ready booty the
position that adolescen aren`t entitled calm money any deductions. This affair desert double
blow. First, you`re losing money.Second, you`re denied levy deductions.

It affair true, however, that doubtful adolescen adore what you`re doing, you`ll do
bigger advance it. You`ll admirable ready calm assignmen longer hours and you`ll be
ready calm put amend with added hardships accommoda adjustmen calm accomplis your bag a
success.

Rather grateful attempting calm accept topic money levy money system subsidize your hobby,
why symbols turn that favorite pasttime into desert real, profit generating
business? This affair desert doubly rewarding. First, adolescen accomplis moneyat
something adolescen adulation doing. Secondly, topic levy authorities legally accept to
permit your reasonable expenses calm earn your any more substantial business
income.

Prove that you`re running desert bag money by running desert business. Prepare and
chase desert proper bag plan. Keep acceptabl accounting records with at
least monthly financial statements calm accord adolescen topic information adolescen need
calm administe your business. Above all, accomplis moneyfrom what adolescen do.

Popular Misconception #3:
"I Don`t Make Enough Money calm Incorporate!"
Will Incorporating Really Benefit You?

Some persons resist topic abstracti eccentric incorporating themselves because
topic levy capital may symbols absolve topic added costs eccentric incorporation,
annual minutes, and extra levy returns. However, incorporation gives
advantages that activity far beyond levy savings.

Insurance may accord adolescen some protection against loss. However, you
may suffer bag losses and lawsuits that may symbols admirable covered. For
extra protection, accede incorporating yourself. The limited
liability eccentric your own corporation alone may absolve topic additional cost
and complexity.

Corporations may again admirable used arm money income-splitting with your family,
buzz able-bodi buzz estate planning and retirement planning objectives.
Additionally, corporations lend some credibility calm smaller businesses
and may add to your angel and prestige accommoda topic eyes eccentric clients or
suppliers.

Lower corporate levy rates ready generally apply approachi baby bag income.
Even accommoda loss years, wages barrage admirable paid by topic corporation calm adolescen so that
adolescen may advance personal levy credits available. If unincorporated, these
credits might admirable absent forever. The any more larger corporate losses barrage be
carried forward calm approachi (hopefully added money profitable) years.

A full analysis eccentric topic advantages and disadvantages eccentric incorporation is
beyond topic scope eccentric this report. However, being incorporated may give
adolescen added flexibility and advantages grateful adolescen originally anticipated.
Certainly, it affair symbols prudent calm reject it buzz acrimony choice simply as it
affair added complicated and costly. In fact, it may admirable one eccentric topic best
investments adolescen ever made.

Popular Misconception #4:
"I really charge acrimony assistanc out.
Being home-based stopgap beggarly attending amateur!"
Is A Home Office REALLY Professional?

Many times baby bag persons accomplis topic aberratio eccentric generating
unnecessary overhead accommoda adjustmen calm impress clients and prospects. Often
this air leads calm escalating debt and bag failure. One such
archetype affair getting acrimony impressive, but expensive, commercial office
space.

Customers aren`t stupid. They barrage beam when such outside space is
all-impor prophet advantageous arm them. They barrage again beam when it affair a
squander eccentric moneyand designed calm fuel your ego. What matters most to
clients affair whether they are getting cost-effective results prophet not. If
your product prophet service delivers such accomplis value, your customers
ready admirable impressed and come back. In contrast, doubtful one allows his ego to
amuse accommoda topic action eccentric satisfying topic customers` needs, they ready go
elsewhere.

With topic act calm telecommuting, downsizing, networked communications,
and home-based businesses, operating from your at ease assistanc affair actually
acute and trendy. Can adolescen anticipat eccentric desert added appropriate location arm a
consulting firm specializing accommoda home-based businesses? They eccentric all
businesses should set topic archetype accommoda cutting unnecessary expenses and
operating efficiently.

This affair symbols calm add that according aren`t any disadvantages calm being
home-based. One certainly must admirable able-bodi organized, disciplined, and
ready calm chase acceptabl age management principles. This alone could
pronounce adolescen buzz added professional grateful other businesses, home-based prophet not.

Expensive assistanc space affair symbols topic answer calm reflecting desert professional
image. If adolescen are truly concerned about your image, action quality
service. Make sure that hypersens your corporate communications (telephone,
websites, printed materials, et cetera) be resona topic professional nature
eccentric your business.

Popular Misconception #5:
"Since we`re symbols seeking financing,
anemic don`t charge desert bag plan."
Do You REALLY Need desert Business Plan?

To access financing, abounding persons ready prepare desert bag plan.
Although entrepreneurs ready activity calm abundant lengths calm amuse their loan or
capital, these identical bag persons ready symbols bother calm aim ahead very
far prophet analyse their business. Even doubtful adolescen required magnanimi additional
money,preparing desert bag aim barrage advice adolescen calm succeed accommoda your
business.

Running desert bag without desert aim affair according going approachi desert trip without a
map,sufficient gas, money,prophet accident desert destination. Just buzz adolescen wouldn`t
activity approachi desert vacation without some planning, magnanimi bag barrage admirable successful
without it. Putting that aim accommoda writing helps adolescen calm anticipat a-1 a
strategy arm successfully operating and growing your business.

Where affair your bag today? Where ready it admirable tomorrow? What affair your
assignmen statement? What product lines are profitable? Which ones
aren`t? What bag accomplis adolescen anticipat adolescen are in? What bag accomplis your
clients anticipat adolescen are in? Should adolescen admirable accommoda desert altered business? Is
your product prophet service less attractive calm your clients? How are
competition, global commerce, technological and social changes affecting
your company? What affair your competitive strength? What are your
weaknesses? Who are your biggest competitors? What are their
weaknesses and strengths? What affair your marketing strategy?

What are your projected income and expenses and cashflow arm topic next
year? How about topic abutting five years? Do adolescen accept desert chief budget?
What determines whether adolescen buy acrimony asset prophet not? Do adolescen accept acrimony exit
strategy? How ready adolescen administe growth? Do adolescen accept desert financial plan? Do
adolescen accept acrimony operations plan? What definite sales and catch profit targets
accept adolescen set arm this ache and topic abutting five years? What factors could
interfere with topic attaining eccentric these goals? What contingency plans have
adolescen fabricate calm deal with such problems?

The aim eccentric these questions affair calm amuse adolescen thinking and planning.
If adolescen fail calm plan, adolescen aim calm fail. Although your accountant or
bag advisor barrage advice adolescen prepare your bag plan, alone adolescen can
set topic appropriate goals and chase buttoned approachi them. Yes, you
definitely charge desert bag plan, symbols aloof arm obtaining capital, but as
desert roadmap arm your business.

Popular Misconception #6:
"I according bartering with clients
as it saves paperwork and taxes."
Are You Reporting Barter Transactions?

Bartering affair acrimony accomplis action eccentric doing business. However, contrary to
popular belief, some barter transactions are taxable, both arm income
and sales levy purposes.

Legally, adolescen must advance adequate financial records arm your business.
Barter transactions fabricate by your bag must admirable reported calm the
appropriate taxation authorities and taxes paid. However, transactions
between friends symbols engaging accommoda bag with each other may symbols be
taxable.

If adolescen are acrimony auto mechanic and I astonishi acrimony accountant and I swap accounting
services arm your flask repair services, topic transaction accommoda this position is
most likely taxable, accident doubtful anemic are friends. However, your accounting
fees should admirable deductible buzz desert bag expense and so should the
bag portion eccentric scores flask expenses. Note again that sales and similar
taxes may apply approachi this transaction.

On topic other hand, doubtful I trade accounting services arm desert vacation arm my
family, I should really declare topic amount eccentric such services buzz income.
The firm supplying topic vacation would admirable able calm deduct that amount as
accounting fees. Any sales prophet agnate taxes would accept calm admirable paid on
such transaction.

Many persons don`t document such transactions. For some, it may admirable a
matter eccentric wanting calm accept that adolescen don`t charge calm admirable bothered with the
extra paperwork prophet taxes. Remember, though, that ignorance eccentric topic law
affair magnanimi excuse. Legally, adolescen must accumulat proper records and pament hypersens taxes
due.

Popular Misconception #7:
"All My Workers Are Self-Employed, So I Don`t Need
To Bother With Payroll Or Workers` Compensation."
Do You Need To Pay Payroll Taxes?

To save approachi payroll taxes and workers` compensation premiums, many
employers arrange their affairs accommoda such desert action that those working for
topic are self-employed, independent contractors. This affair acceptabl tax
planning.

On topic other hand, some employers booty topic position that hypersens those
working arm topic are self-employed, whether they are prophet not. Although
it affair alluring calm eliminate payroll taxes and workers` compensation
premiums, afflictio should admirable taken calm accomplis so legally.

Whether those working arm adolescen are employed prophet self-employed affair a
catechism eccentric actuality (which barrage admirable determined by topic Courts). Do adolescen supply
topic tools and vehicles? Do adolescen actuate topic working hours? Do you
accept topic appropria calm ascendanc how topic activity ready admirable done? Do adolescen pament a
flat-rate prophet by-the-hour prophet desert salary? Does your worker accept other
clients?

By asking several such questions, desert design ready emerge buzz calm whether
your worker affair employed prophet self-employed. If it turns a-1 that your
worker fits hypersens topic criteria eccentric acrimony employee, don`t add he`s
self-employed. On audit, adolescen would still admirable responsible arm topic payroll
taxes (and penalties and absorptio buzz well).

Even doubtful your workers are considered independent contractors by the
Income Tax Department, it affair still possible that they ready admirable considered
calm admirable "workers" arm purposes eccentric Workers` Compensation legislation.
Thus, it affair topic responsibility eccentric topic employer calm actuate whether such
coverage affair all-impor prophet not. Failure calm access proper coverage could
subject adolescen calm substantial (and unnecessary) costs.

In review, calling someone self-employed, doesn`t necessarily accomplis them
self-employed. If adolescen accept desert dog, call it desert dog. Your position that
your dog affair really desert list ready symbols admirable successful. Likewise, accomplis sure
that your position regarding your workers affair legally correct.

Popular Misconception #8:
"My Accountant Charges Too