If you are starting a new business in Iowa, or buying a new business, it’s important to think through how you will deal with taxes and accounting methods. Before you even open the doors of your new retail store or service business, make sure you have accounting plans in place.
Choose your accounting software carefully. Popular packages include Peachtree Accounting and Quickbooks, and other accounting systems as well. Your accounts payable and general ledger systems should be easy for your employees to manage, and yet robust enough to interface with other systems when necessary. If you are going to handle these accounting functions in-house, make sure that you consider the cost of technical support from the system’s vendor. There are Fort Dodge Accounting services that have experience in helping businesses to select accounting software.
Will you handle all aspects of payroll within the company, or will you use an outside payroll service?
Plan for the tax implications of your business setup. Should you incorporate the business as an S corporation or a C corporation? Alternatively, you may start the business as a Limited Liability Corporation (an LLC), a partnership or a sole proprietorship, if it meets the criteria for one of those categories. If you don’t incorporate at all, your personal assets could be at risk in some circumstances.
Whether to lease or buy assets for your business is a major decision that will affect the business’ taxes. You should carefully consider whether assets like computers, vehicles, and even the office space itself should be owned or leased. If the asset is owned, you may be able to claim depreciation amounts for a number of years after the purchase. Some capital assets actually appreciate over time. You may decide to install a Fixed Assets system on your computer system to help you keep track of the equipment owned by the business.
If you have an employee who is a CPA, or otherwise knowledgeable about business tax law, you may want to have this person do your state and federal corporate taxes every year. If you’re not going to have your treasurer or accounting manager do the taxes, you may want to choose a local accounting firm to handle your corporate taxes and to advise you on good tax strategies.
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