Categories: Blog

Financials, Do you Really need Them? Part 1

2 Reasons to have – one is obvious and that is compliance (can you say taxes), the other is for decision making.

Part 1 – Compliance

The IRS expects businesses to act like a business – Dah!

Dah, BUT many of you don’t.

Do you think Google, or Facebook or any other “real” business does their Financials Statements 1x/yr? or even quarterly? Of course not, that is ridiculous. Well why do you think your business can get away doing their statements 1x/yr, right before taxes are due?

If you don’t act like a “real” business, how can you expect the IRS to treat you like one?

You can’t. And if they don’t they can deem your business a “hobby” and dis-allow all deductions, while of course still having you recognize your income. We’ll call that a double whammy!

Why would you take such a risk when having monthly books can cost as little as a couple hundred $’s a month?

You buy insurance, how is this any different?

02/24/2020
By: Gary Grottke, CPA, Quality Back Office LLC
hollie bourne

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