Are You Making Money on Your Website

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You have to keep tedious records of how much you spend on a site as well as how much your company made, without these files you are really in the dark.There are tons of books about accounting, but I recommend Accounting for dummies. When you get ready to form a business, like an LLC spend the money to get an Attorney to set it up and tell you exactly what you will need at tax time. What most people don't realize is that the IRS doesn't recognize an LLC. LLC's were set up by the states and rules vary from state to state

GAAP is the gold standard for preparing a financial statement. I believe for us this is overkill for us, but only an attorney or a tax accountant can tell you what you need. The GAAP standards have evolved over the years and as I said to me it is overkill for a small business.

If you use an accountant, he will tell you what he needs to file your taxes. I am writing this blog because, in one of my previous business, I used the best accounting books and had the best tax accountant around and still went bankrupt simply because I did not know how to keep all the information I should have. You have to do it daily and diligently to have a chance of staying in business long term.


Creative accounting is otherwise known as cooking the books, and then spending the extra money is fine until an unforeseen event comes along. In my case, it was a truck blew an engine, and a Caterpillar engine cost 35,000.00 dollars to rebuild. IfI had kept the profit in the company it would have been no problem. But my creative accounting put me out of business. Total 135,000.00 investment lost. Don't let this happen to you.

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Recent Comments

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According to my own tedious records, I am £718.61 up.

Thank you, Albert. This is really good advice and better at the beginning of your business than later into it. I love the books for Dummies.....I can actually understand most of what it says. Very nice of you to share this information with all of us. s

Good advice :)

Wise advice, especially about using an accountant. I preach that all the time here, no matter how small, it's always important to use lawyers and accountants rather than advice from strangers on the Internet. Thanks for posting.

Thanks

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