Real Estate Accounting - Settle your money

Any businessman needs a financial advisor and off coarse an accountant. You will find that as your business will increase you will have a more complex financial turnover. What to do and how to manage them? This is a very important question which can arise in any businessmen mind. However it is quiet simple since professional accountants are available to do he job.

I will give you some points which will be very helpful for maintaining good financial record:

1. Keep all the business startup credentials in one folder. Documents to include in this folder are business licenses, articles of incorporation-if you are not incorporated, federal EIN number, home office occupancy permits.
2. Open a business account for your business. Keep all the personal expenses away from it. Keep all the bank statement in a folder.
3. Make copies of all the checks received from customers and keep them in a folder. Name it revenue 2008. Make copies of all the other checks deposited in the business bank account and keep it in a folder " other bank deposits 2008"write on the check copies the source of these funds like capital contribution loan proceeds, sale of fixed assets, other income etc.
4. Keep track of all the commerce operating cost salaried by cash out of your pocket. Keep acknowledgment and other credentials in a folder and compensate physically through the expense report.
5. If you are paying corporation bills with manual checks, carve on the check counterfoil that expenditure category like organization rental fee, organization provisions, publicity, and contract employment and so on.
6. If you are using commercial credit card you need to categorize the everyday expenditure shown on the credit card statement. Keep all the credit card report in a folder titled" credit card statement 2008".
7. For payrolls keep different file for each employee. Keep copy of each centralized and circumstance preservation documents along with 1-9 form in their individual file. If you appoint a contract worker be sure to write them out a form W-9" request for tax payer recognition number and documentation". This form is present and available on the IRS website. You will require this information in order to process 1099's at year end for those contractors.
8. Bank statements should be prepared to accept monthly to make sure that all the business deal disturbing cash are captured. Be certain to maintain record of all the mileage related to business use of the car. The IRS can disallow reduction if you will not maintain the record properly.

If you keep all these in mind not only you will feel better but your accountant will feel great. It's really the best way that any businessman can keep his financial record intact. Accountant will find it very easy when he will redesign your financial statement