Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-05-2007, 06:04 PM
Junior Member
 
Join Date: Jan 2007
Posts: 16
What are the minimum accounting records required by IRS?

I have started my own business and was wondering what are the minimum accounting records required in order to file my LLC tax return for 2007?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 05-08-2007, 11:00 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Well, that is a rather complicated question and it depends on the size and nature of your business.

Accounting records that the IRS recommends you keep include double entry method of accounting that includes Balance Sheet and Income Statements. The main objective here is that you are able to produce a profit or loss statement that tells you how well your business has performed, that is, did you incur a profit or a sustain a loss.

The Balance sheet presents you the owner of the business with a picture of your current assets, fixed assets liabilities and owners equity.

Most new startup businesses with a minimum of complex transactions are advised to use Quickbooks or Quicken. This is a simple software program and you can easily train yourself on this program.

However, I really think that you should first consult with your CPA and get his advise as to what may be the best option for you. Also, note that certain LLC's which do not meet certain revenue tresholds are not required to produce balance sheets for tax returns, however, in case of an IRS audit they are required to produce a balance sheet.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 05-14-2007, 04:16 PM
Junior Member
 
Join Date: Jan 2007
Posts: 16
As always, thanks a lot for answering the question. I really appreciate it and I am going with your advise of having my books kept on quickbooks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning