HOW TO SET UP A TAX SAVING BOOKKEEPING SYSTEM

HOW TO SET UP A TAX SAVING BOOKKEEPING SYSTEM



HOW to​ SET UP a​ TAX-SAVING BOOKKEEPING SYSTEM
One of​ the​ most important,​ but least understood or​ appreciated
aspects of​ any business is​ its bookkeeping or​ accounting system.
And,​ because very few people know much about the​ reasons for a
bookkeeping system,​ most people are frightened by the​ thought of
the work involved in​ setting up such a​ system,​ and the​ drudgery
of daily maintenance.
There's really nothing complicated to​ bookkeeping it's as​ simple
as keeping a​ daily dairy and' or​ maintaining your personal
checkbook .​
At the​ bottom line,​ it's simply a​ matter of​ recording
your deposits-your incoming monies-and keeping a​ record of​ the
money you​ spend.
So,​ the​ first thing you​ need to​ do is​ open a​ business account for
your extra income business or​ endeavors .​
Generally,​ this is
simply a​ matter of​ asking the​ new accounts teller at​ a​ local bank
for a​ business account registration fee,​ send it​ in​ to​ the
appropriate commissioner,​ and from there,​ open you​ a​ new business
account-complete with imprinted checks.
Drop by a​ local stationery store and pick up a​ loose leaf
notebook,​ and a​ supply of​ paper .​
We've always picked up a​ supply
of index tabs at​ the​ same time--either to​ separate the​ months or
the accountability sections for each item we sell.
Assuming that you​ want to​ make it​ as​ simple as​ possible,​ while at
the same time keeping it​ as​ efficient as​ is​ necessary-here's what
you do and how to​ do it.
On the​ first page in​ your notebook,​ write on​ the​ top line and in
the middle of​ the​ page: Monday,​ January 1st,​ 1983
or whatever day you​ officially start your business...Then,​ as
your orders come in,​ if​ by mail,​ as​ you​ open your mail-jot down
starting from the​ left side of​ the​ page,​ the​ amount you
received-dash-for what-from whom,​ and their address .​
The page
might look like this:
Monday--- January 1 1983
$
14 Tapes
100 S.W Fee-Barton
10 Hong Kong Dir #261
10 #261
3 Whsle Prt Dir #49
70 Hot Line Lst--Morgan
TOTAL INCOME $207 EXPENSES 0
That's all there is​ to​ it,​ and boiling it​ all down,​ it​ amounts
to recording what you​ receive and what you​ spend.
The next entry,​ immediately under that first day's entry might
look like this:
$207 Deposit
11 Printer-for copies
10 Sec & riches thru R Est #302-Rogers( 75010)
3 Simplified annual M.O bkkp Sys (21104)
10 Money Magnetism-Kline (88033)
36 R.W Fee-Magnuson (10067
6 Manual on​ Bookselling-#291-Magnuson (10067
15 display Ad- Smith 948089)
22 Ideal Ofc Supplies-printer paper
TOTAL INCOME $80 Expense $33 Deposit $207
And then,​ carry on​ with this recording of​ the​ money you​ deposit,​
receive and spend each day with similar entries for each day of
the week-every day Monday Thru Saturday for each week .​
It's
simple uncomplicated,​ and a​ positive record of​ your business
activity.
Then at​ the​ end of​ each month,​ transfer this daily information to
one of​ the​ low cost bookkeeping registers that your tax
consultant or​ accountant can work from .​
These people won't work
from your daily dairy,​ ad will not transfer the​ information you
record in​ it​ to​ a​ formal bookkeeping register without charging
you a​ small fortune .​
it's not that big of​ a​ job,​ ad if​ you​ do it
after te close of​ the​ business on​ the​ last day of​ the​ month,​ it
will take at​ the​ most a​ very few minutes .​
Then,​ of​ course,​ when
you're ready to​ do your taxes,​ you​ simply give your bookkeeping
register to​ whoever is​ going to​ do your taxes,​ and you're home
free.
The bookkeeping register you'll need can be any simple columnar
notebook-we use an​ Ekonomik Register,​Form RL-17
available in​ a​ number of​ different styles and sizes from Ekonomik
Systems-PO Box 11413-Tacoma,​WA 98411 .​
All you​ really need is​ some
sort of​ notebook with a​ number of​ columns marked off,​ a​ title
written at​ the​ top of​ each column,​ and a​ record of​ te money
received for each day relative to​ the​ product or​ service each
column represents .​
Then at​ the​ end of​ each month,​ you​ can simply
add the​ totals from each column and you'll instantly know how
much money you​ took in​ from each of​ your offers.
Beyond te date column,​ will be your record of​ expenses or​ money
spent .​
Again,​ you​ should title each of​ the​ columns you'll be
entering figures into,​ and then record your expenditures for
items falling into those categories .​
Then at​ the​ end of​ each
month,​ it's a​ simple matter to​ add the​ total from each column and
know exactly where you​ stand relative to​ profit or​ loss-how much
you took in​ compared to​ how much you​ spent.
Bookkeeping and/or accounting is​ a​ very simple and should not
scare you​ .​
Just keep it​ simple,​ ad up-to-date .​




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