Ledger Elite Bookkeeping & Tax Services LLC

Every business needs financial records and will be engaged with the governmental offices.  With the onset of the new 1099-K reporting, now is the time to start evaluating your business.  Whether you consider it a side gig or freelance or not, if you are generating $400 income in the calendar year, you are a business owner.

As a business owner, there are some things that you should be doing:

• Avoid mixing business and personal expenses. Two checking accounts are the best; however, if you have not done this, you should have clear records of who, services performed and the amount of payment.  This goes for your credit cards as well.
• Log receipts and expenses every day of activity.  In addition, any mileage logs and notes of the day's activities should be noted. And keep those receipts! Many people think that because it is printed on a statement that they do not need to keep the receipts.  However, in the event of an audit, they will ask for the original receipts.
• Do a quarterly (or monthly review or checkup of your business.  Not only the financial records, but your notes as well and any information that you have collected regarding your business or potential new customers or vendors.
• Do not wait until end of year to decide it is not something you can handle or don't want to handle. Get Help!