Are you a business owner, and have an accountant in Orlando? How do you manage your finances and how do you keep your books? You should have a proper system in place so that all your finances are in order. This will help you keep a track of your profits and monitor your growth. Moreover, you will be able to achieve both your short term and long term goals more easily. Analyzing the cash flows will also let you come up with strategies that improve your profits.
Proper bookkeeping has advantages in terms of taxes as well, and you will be able to keep yourself away from IRS trouble. Here are some bookkeeping tips for you. If you have any queries, take help from your accountant Orlando, FL.
Plan all major expenses
Got some major expenses coming up? Plan for them in advance so that you have to take no loans at the last minute. Maybe if you can start saving now, you will have accumulated enough funds by the time the expenses become due. So for instance, if you have to upgrade all office computers, you should start planning at least a year ahead. Jot it down in your calendar and start saving.
Track your expenses
Keep a track of your expenses and use a proper accounting software for this. If you cannot operate one, hire an accountant Orlando, FL and they wall input all your data into the software. Doing so will ensure that you are taking all possible deductions, which will help you lower your tax bill.
Want to make things easier for you? You can use a business credit card and the monthly statements you get will serve as a good enough record. Moreover if you link your card and bank account with the software, things will become even simpler for you.
Keep a tab on all expenses as well such as when you hold a business meeting or have dinner with a client. All these can be used as deductions, which will reduce your taxable amount.
Record deposits directly
Most of the businesses use the cash based accounting system, which implies that you have to pay no taxes until you actually receive the money. Recording your deposits directly helps you avoid taxes on money that is not income. Many people make a mistake with this and confuse deposits with income. Ask your accountant Orlando, FL and they will guide you.
Set aside money for taxes
Businesses can incur huge taxes at times, and if you are unable to pay them, you also have to pay additional interest and penalties. A good way to avoid a huge tax bill is to pay estimated quarterly taxes. Other than this, save money for taxes so that when tax time comes, you have no trouble in paying the bill whatsoever.
Monitor your invoices
Keep a track of your billing and make sure all your customers are paying you timely. Not doing this will reduce your profits and hurt cash flows.
Are accountants in Orlando Florida confusing you with words?
A common problem faced by many people is that they don’t clearly understand the terminologies used by professional accountants in Orlando Florida. These terminologies are used when the accountants are explaining the accounting process and majority of the people sit blank not understanding the words and terms.
It is better to learn what these hard terms mean so that you have a better idea of the explanation given to you by the accountants and will also add up to your knowledge. It is best that you learn these accounting terms before you visit an accountant.
Know the accountant’s language
Some of the most commonly used terms by accountants in Orlando Florida that you need to know are:
These are known as the suppliers of your business that you deal with on a frequent basis and owe them money.
The gains, sales and income your business generated is referred to as Credits by accountants in Orlando Florida.
Assets is a term used when an accountant refers to the property you own. There are two types of assets: fixed assets and current assets. Fixed assets can’t be immediately converted into money because these are properties and buildings. And current assets can be sold and the company can earn money out of them.
These are people or suppliers that owe your business money.
The cost and expenses that your business acquires are known as debits.
This is the amount of money generated by the business and these also include profits.
Liabilities is a term used by accountants when they are referring to any loan that you need to pay. Liabilities are very important because they might jeopardize your business if not paid on time. There are two types of liabilities; current liability and long-term liability. Current liability is the one which you have to pay immediately while long-term liability is the one which you might pay in a year’s time.
A balance sheet calculates all your assets, liabilities and equity at the end of a year. It tells you about your business’s financial condition so that you can formulate effective business strategies for future.
Expenditure or Expenses
This term is used byaccountants in Orlando Florida when they are talking about the costs that need to be paid for your business to run. These expenses include utility bills and other day to day activity costs.
It is a term used for the estimate of the difference between cost of sales and sales.
When total expenses and costs of your business exceed the total revenue generated is known as Net Loss.
The amount left when all of the costs are excluded from the total profit is known as Net Profit.
Gross profit is a term used for the total amount of sales obtained from selling your goods and services.
These are the basic terms that most of the people get confused with while visiting an accountant in Orlando Florida. These terminologies will definitely help you understand the accounting process more effectively and you will be able to assess your business properly.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.