A Quick Guide to Paying US Taxes

If you are searching for a quick guide to paying your US taxes when you have an online business then this article is of you!  Specifically, I will explain proper tracking methods, the importance of exact record keeping and some beneficial software that you may want to obtain.  After you are finished reading this article, you should know some of the basics for keeping records as a quick guide to paying US taxes.

Tracking

The first thing you may want to do if you have an online or ecommerce business is to hire an accountant.  Let’s face it- there is nothing like professional knowledge and skill.  Hiring an accountant will really give you that confidence to know that you are going about tax preparation in the proper manner.  Next, you must track all your expenses.  You really want to be able to figure up the cost of everything.  This includes client meetings, gasoline, office supplies and insurance.  There are a wide variety of all the expenses that must be tracked.  Finally, don’t forget to track your payroll if you have one.  Payroll represents a major expense for companies and certainly should be included.

 

Maintain Records

In order to accomplish all this tracking and figuring, it is necessary to keep all your receipts and invoices.  You should not estimate.  You should have the exact receipts in order to have a proper and correct figure.  This creates a need to have a physical place where papers and receipts can be put in order not to lose anything.  Also, back this figure up through credit card statements and receipts.  Keep those old credit card statements as they may function as your proof of purchase in many instances.  Keep all of these papers and documents for seven years so that in the event of an audit you will be completely prepared.

Obtain Software

Some people are simply not very organized by their nature.  This is not something to be upset about but it is important to put the proper systems in place.  For these people for whom organization is a challenge, it is advisable to get some software in order to streamline and organize the process of getting ready to pay US taxes.   

Many people have had great results by using the program Intuit’s QuickBooks.  It should be priced around $120 or less, which is not a bad investment in a great program.  QuickBooks has several different options to choose from.  They track payroll, sales tax and more.  It is worth it to get QuickBooks to help you with record keeping. 

There are certain people who are more “low tech” and don’t really like to use software.  For these people, just use whatever organizing system sits right on your desk and can make you feel more orderly when it comes to tax time.  You could actually use a physical file or hanging file.  Such tactics worked in the old days and they still work for the people who feel uncomfortable with accounting programs.  This is perfectly fine.  It is your business and it is your system.  The system should be one you feel comfortable with that would help to organize you.  The point is, be sure to keep records of everything through whatever means are best for your individual needs.

The above are some suggestions on how to prepare and is a quick guide to paying US taxes.  By tracking, keeping proper records and obtaining useful software, the entire process of paying US taxes will be made so much easier.  Now that you are aware of some of these suggestions, use them in conjunction with your tax professional to have a smooth US income tax preparation.