Frequently Asked Questions About Bookkeeping
Each year, business owners scramble to file tax returns before the last day to avoid penalties and letters from the Internal Revenue Service (IRS). So, to ensure that your enterprise is compliant and can get the maximum tax rebate, it’s essential to work with a bookkeeper who can prepare your books accurately.
However, when it comes to bookkeeping, there are a ton of questions clients have but often find answers difficult to come by. Therefore, Phoenix Business Services Inc. wants to arm you with the most accurate information available to help you make informed decisions. To do this, we’ve answered some of the most frequently asked questions about bookkeeping.
1. How important is record keeping?
Without maintaining a record of income, expenses, and asset balances, a business will not prosper. How else can we understand where the company is heading? Keep in mind that record keeping is essential for calculating and paying the correct taxes to avoid hefty fines.
2. Do I need a separate business bank account?
Most businesses should have separate bank accounts to keep business transactions and personal transactions separate.
3. How do I file my small business taxes?
Sole proprietors attach Schedule C, Profit or Loss From Business, to Form 1040 to file their small business tax returns.
Partnerships must file Form 1065, U.S. Return of Partnership Income. The partners must submit a copy of Schedule K-1 (Form 1065) to the IRS and distribute Schedule K-1 to each partner.
Corporations use Form 1120, U.S. Corporation Income Tax Return, to file taxes.
S corporations file taxes using Form 1120S, U.S. Income Tax Return for an S Corporation.
LLCs file taxes using a form that corresponds with how they’re taxed (i.e., sole proprietorships, partnerships, or corporations)
4. How much does it cost to outsource bookkeeping?
Each company is different. The fee gets calculated on the time the work takes to complete and the volume of bookkeeping involved.
5. What is the Basic Role of a Notary Public?
Notaries are responsible for witnessing and sealing the signatures of the signing parties applicable to a written agreement.
Get in touch with us today!
If you have any more questions about bookkeeping, get in touch with the experts at Phoenix Business Services Inc. As the best bookkeepers and tax preparers in Lancaster, California, we provide reliable services. We specialize in accounting, bookkeeping, payroll, and tax preparation for individuals and businesses. We also offer notary services to our clients.
We serve clients across Palmdale, Littlerock, Santa Clarita, Lancaster, Rosamond, Quartz Hill, Acton, and the surrounding areas.
To learn more about how we can help you, please click here or contact us by calling (661) 945-5576. Alternatively, you can email leebookkeeper@yahoo.com.