Your Business Success Depends On Keeping Your Taxes In Order

If you are going to run a successful company, then you must take care of your financial affairs. Not only does this mean making sure that you turn a profit and remain in good standing with vendors, lenders and others that you do business with, but also paying your taxes. Although you might be tempted to skip this important matter, doing so can jeopardize your entire operation.

When you are first starting a company, money can be tight and you can’t always just go to the Bank ATM machine to get more cash.  Sometimes businesses avoid filling out the appropriate tax documents during this initial stage, thinking that they can start taking care of taxes “next year.” However, this can land you in hot water with the IRS. If they decide to audit your company in the future, you will end up owing back taxes, fines and possibly other expenses.

However, just paying your taxes isn’t enough. You must keep your taxes up to date and handle all of the paperwork in the way required by law. There are several different forms that come with filing business taxes, and the specifics will depend on multiple factors, such as the size and type of business you operate.

The best way to minimize the chance for problems with the IRS is to have a professional accountant or bookkeeper help you to manage the regular books and banking, as well as filing taxes. Unless you have personal expertise in the field, you are far better off investing in an experienced pro that risking expensive mistakes on your own.

You will need to provide all of the relevant documentation to whoever you hire to manage your financial affairs. While many of these documents are available in digital formats these days, that is not always the case. Keeping a hard copy of receipts is a good practice. Ask your bookkeeper the best way to keep them in order. As for your digital documentation, it is vital that you keep all of these records easily accessible and organized. Make certain that you are working with master lists so that you don’t forget important matters.

The regulations for filing business taxes are amended virtually every year, just like personal taxes. Not only does a good accountant have a solid background in tax laws and regulations, they keep up with these new requirements to help ensure their clients are satisfied with their financial management services.

No matter the size of your company, you need to file your taxes every year. Doing so will help your business succeed.

Choosing A Savings Account

It’s always a good idea to build up a fund of savings, or emergency fund, to meet any unexpected expenses and generally provide a bit of financial breathing space, and investment for our futures is becoming more and more important as uncertainty over pension arrangements in the long term grows. There are also compelling reasons to take savings seriously as the after-effects of the recent credit binge become ever more apparent.

So savings are a good idea – okay – but as with most things financial, things aren’t as simple as they seem at first. There are several different kinds of savings account on the market, and which one you choose depends on your financial circumstances and how you plan to save into the future.

Regular Savings Accounts

With regular savings accounts you commit to depositing an amount of money each month, either a fixed sum you decide on before you open an account or any amount within a range specified by the bank. These accounts often have attractive interest rates, as their limits on deposits mean that the total interest paid out is also limited and so the bank’s exposure is under control.

Regular accounts make sense for people with no capital to invest, but some surplus income each month. They can also work as part of a mixed strategy, with any capital invested in a long-term, high-interest account, and new deposits put into a regular saver to take advantage of the good rates.

Deposit Accounts

These accounts don’t impose any kind of limits on deposits – within reason, you can deposit as much or as little as you like, whenever you have funds to invest. They make sense if you have some capital to invest but no fixed regular surplus income.

There are three kinds of deposit account, with different levels of access to your money:

Instant Access – With these, you can withdraw your money at any time, without losing out on any interest already earned.

Interest Penalty – No interest is paid for any month in which a withdrawal is made.

Notice Accounts – A specified number of days notice must be given before a withdrawal is made in order to avoid any interest penalties.

In general, the more restricted your access to your money, the better the interest rate you can expect to receive.

Bonds

The final type of savings account we’ll look at is perhaps moving more into the realm of investment rather than savings per se, but as these accounts are offered by many mainstream banks they’re worth considering.

With a bond, you hand over a fixed sum of money which is locked away for a specified period of years, with no access allowed at all. At the end of the term, your initial investment will be refunded along with the return it’s made. Depending on the type of bond, this return will either be a fixed rate of interest, an interest rate tied to base rates, or the results of a stock market investment usually with a minimum guaranteed return.

These accounts are only really suitable for people with plenty of capital to invest, with no need to access the funds during the term, and who are looking for a good return without the uncertainty involved in other possibly higher yield types of investment such as shares.