by Bobbi McKechnie, CPA, Zellner & Associates PA

April 15th -  Tax Day!  No other day of the year so focuses business owners’ attention on the money they send to the government or the complexity of completing tax returns. As this day passes, our thoughts often turn to fresh starts and resolutions.  It’s the time of year when our motivation to develop new strategies make real changes is at its highest.  We’ve gone through our receipts and checkbooks hoping to uncover that elusive gem of a tax deduction. It’s time to make next year’s preparation less painful than this year’s.

For those of us who are calendar year business owners, the fun extends to finalizing and reconciling our yearly accounting for both tax and financial reporting purposes.

This year, why not make it a goal to tidy up your recordkeeping process.  Keeping good business records will help you analyze the current state of your business, as well as locate areas of potential trouble or opportunity.

There are many commercial record keeping systems available.  As CPAs, we at Zellner & Associates, PA recommend our clients use a computerized record keeping system such as QuickBooks or Peachtree.  You can choose to keep the records yourself, or hire someone to do it for you.  Most importantly, your choice of record keeping systems should fit your business.  It should be simple to use, and the reports should be useful and easy to read.  Your records should work for you to assist you in making decisions about the future of your business, as well as report to you what has happened in the past.

Finally, sticking to this resolution will benefit your bottom line at tax time.  Accurate records will help you report your income accurately and capture all of your deductible expenses.  Providing your CPA with tidy financial records should decrease the cost of your tax return preparation.  Going through a shoebox of receipts takes some time, after all, and your CPA will be the first to congratulate you on getting organized.

Be sure to keep invoices, receipts, and other documentation relevant to your tax return for at least three years.  Ask your CPA for additional record retention guidelines.

Talk to your CPA today about choosing a record keeping system that’s right for you and your business.  Begin now to plot your course to success in 2010!