Bookkeeping tips and important bookkeeping advice. Read the top five tidbits for a smoother, more efficient tax time along with the top four bookkeeping basics on tips.
Find out what the top five tips are for a smoother, more efficient tax season.
1. Lost productivity and mistakes will often come from misunderstanding authority and responsibility. A tax season will be smoother when everyone knows the proper work and flow, what their jobs are, and exactly how much authority they have to make decisions. You can make all of these things clear by designing organized processes, bookkeeping procedures and systems that your team can follow.
When a business owner begins to feel overwhelmed, it's time to get systemized. Prioritize a to-do list and work on one thing at a time. As you cross a task off, celebrate! Make sure your team is clear on the priorities too.
Business can be a very detail-oriented affair, and it's really easy to get caught up in the moment especially when your dealing with your daily bookkeeping tasks. If you ever feel like you're drowning in details, stop and take a deep breath.
Now look at the big picture. Just think about what your business goals are and remind yourself that you can obtain them. This exercise can help you to get back in tune with what's really important to you and will help you put everything back in the right perspective.
Without clear communication it will be hard to get through the tax season. Your CPA or Chief Financial Officer is going to have a lot of questions for you and you will need to be able to answer them appropriately.
Make sure you are not overtired and have plenty of energy to get you through. Be appreciative of all of the work that your accountant is doing for you. Gratitude is one of the fastest ways to change your perspective for the positive.
Emotions are contagious. So is stress. If you are in a bad mood, everyone around you will feel it and may not be far behind. But if you come in cheery and ready to tackle the task before you, you can influence everyone in a more positive manner. It's a lot more fun to be around cheerful people.
Are you a hairdresser, waiter or waitress? Do you work at a barber shop, golf course, hotel, casino or drive a taxicab? Did you know that the money you receive from those services is taxable income?
Here are some tips about tips:
The tips you receive are subject to federal income tax as well as Social Security and Medicare taxes. It may also be subject to state income tax as well. The value of non-cash tips, such as tickets, is income and is also subject to federal income tax.
If you receive twenty dollars or more in tips in any given month then you should report the tips to your employer. Your employer in turn is required to withhold federal income, Social Security and Medicare taxes.
You can use IRS Publication 1244, Employee's Daily Record of Tips to record your tip income.
You must include in income all cash tips you receive directly from customers, tips added to credit cards, and the share of any tips you receive under a tip-splitting arrangement with your fellow employees.