9 THINGS YOUR TAX PREPARER MAY NOT WANT YOU TO KNOW

As a small business owner, accounting and bookkeeping are one of the most critical aspects of your business that you should not joke with or try to perform averagely at. It should be a top priority for you. This is because it will be impossible for you to effectively monitor your business's performance if you do not organize your financial information. If the finances are falling short, the organization will definitely be affected. Moreover, a report has it that one of the top reasons why small businesses fail to survive is a lack of proper accounting and bookkeeping, but don’t worry Zanda Tax always helps their clients so that they can do their business easily which makes us genuine company for the Best Bookkeeping services in Texas . You may think it is cost-effective to perform this service yourself or keep it in-house. The truth is, running a small business is usually challenging. There are just so many things to worry about, and accounting and bookkeeping in themselves are overwhelming. Of course, you cannot juggle all these together and have a good result. One or two aspects will significantly suffer for it. Without mincing words, regardless of how small you consider your business to be, you should allow a professional to handle the accounting and bookkeeping aspects. There are numerous benefits associated with doing this, and some of them include: 1. You will understand your financial situation: The lifeline of every business is money. That is, for any business to survive, there must be an inflow and an outflow. No matter how small your business is, cash flow is constant; hence you need to understand where the cash is coming from, how it is spent, and what you have as savings for your business. A proper accounting and bookkeeping structure afford you this understanding. A professional accountant will not only give you a clear and precise insight into your financial situation but also provide you with a microscopic detail on every cent in your business. 2. Effective management of cash: Another benefit that a proper accounting and bookkeeping structure gives you is the effective management of money with these for us it doesn’t matter how big a firm is Zanda Tax offers their Accounting and Bookkeeping Services for Small Businesses to big enterprises. The good thing about having effective cash management in place is the ability to track customers' and suppliers' accounts, i.e., monitor deposits and payments, and create budgets. You won't just spend money on impulse because there's an account for every money spent or received. This will help you ensure that you do not run out of cash; pay your staff on time, and have peace of mind. 3. Better business decision: You, without doubt, will be able to make excellent business decisions when your financial information is organized and you understand your cash flow. 4. Business Analysis: An efficient accounting and bookkeeping system allows you to analyze your business and know how it is performing. With this, you will know which aspect of your business is performing well and which is lagging. 5. Plan for the future: Understanding your business performance based on analysis will help you make good plans. Also, based on past results, you can project earnings/losses and work on better future decisions. 6. Reduce risks: Having an organized report of your financial statement will help you reduce numerous risks, which include: internal fraud, cashflow shortage, losses (e.g., spending too much on ineffective marketing), tax audits, etc. Once again, having a team member handle your accounting and bookkeeping system may not be ideal because they are prone to commit errors that may be costly for the business. However, outsourcing this to a company allows a group of professionals to work on it will minimize errors and reduce risks generally and the best part is Zanda Tax offers the Best Accounting & Bookkeeping Services in Houston . 7. Tax compliance: An excellent accounting and bookkeeping system allows you to pay your taxes- income taxes, sales taxes, payroll taxes, and worker's compensation without breaking a sweat. Moreover, when you have a professional who is conversant with the ever-changing tax code handle this for you, you can be sure that you are not breaking any tax rules that can put you in trouble with the IRS or ruin your business. 8. Easier audits: Interestingly, the IRS does not only audit defaulters; they also choose at random for audit. Therefore, having a professional accounting and bookkeeping system for your business will make things easier for you if you receive an audit invitation from the IRS. 9. Tax prediction: If you consistently monitor your finances and you are conversant with your tax returns over the years, it will be easier to predict an estimate of what you will be billed in the coming tax season. 10. Business advice: A good understanding of your business finances will make you seek help when things get overwhelming; you won't just be operating in darkness. Hiring professional accounting and bookkeeping services will expose you to a lot of expert knowledge, experience, and suggestions. 11. A good relationship with banks and investors: A detailed, transparent and up-to-date financial report will not only put you in a good relationship with your bank but will also spike up the interest of investors in your business. Investors will be confident that you know what you are doing and become willing to take a chance on your business. 12. Saves you time: Time is a very important factor in life and affect everything we do as humans. Neglecting the accounting and bookkeeping of your business will cost you a lot of time and stress later on, and this neglect can only happen if you decided to take the responsibility all by yourself. However, outsourcing it to professionals will afford you the time to effectively do other things in your business, spend time with your family and also do the things you love. Zanda Tax understand this & that’s why we provides the Best Accounting services in Houston . In summary, there are a lot of benefits that an efficient and consistent accounting and bookkeeping service gives to your business. It is not more cost-effective ignoring the role of a professional accountant in helping you do this; instead, it may end up being costly. Make the sacrifice of getting professionals to work with you on this today, and I promise you will be grateful you did.

With the future of Social Security uncertain and company pension plans being cut back, careful management of your 401(k) becomes very important. Here are some basic guidelines to help you make the most of your 401(k) investments: Start early. A 25-year-old employee who saves $300 a month will accumulate over $1 million by age 65 (assuming an 8% annual rate of return). By waiting ten years and still investing the same amount ($300 a month), that employee would accumulate less than $500,000 by age 65. Be willing to take some risks. Over the long term, you aren't likely to beat inflation by placing all your money in ultra-conservative investments. If you are more than five years from retirement, consider putting at least a portion of your money into stock funds. A fund that mirrors the overall stock market, for example, is likely to beat inflation. Don't invest too much in your own company's stock. Even if you're confident that your company will be profitable for years to come, it's seldom a good idea to tie your financial future to one firm. In some cases, employees are locked into their employer's stock, but if you have a choice, consider diversifying your 401(k) funds. Don't be quick to borrow from your 401(k). Although you can repay principal and interest to yourself, dipping into your 401(k) will reduce its earning power. If it's available, a home-equity loan may be a better alternative, especially since the interest is generally tax-deductible. Don't raid your 401(k) when you change jobs. Resist the temptation to deplete your retirement savings when you change employers. If it's allowed, leave what you have in your old plan or roll the money into your new employer's 401(k). Another option is to roll the funds into an IRA. Review your portfolio at least once a year. If you've decided to keep 60% of your 401(k) in stock funds, a bull market can push the stock portion of your portfolio beyond the limits you've set. By readjusting your portfolio annually, you'll maintain the desired mix.