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Sunday, September 10, 2017

Ways budgeting can be easy for your business

There is plenty of budgeting advice out there for personal finances, but what about businesses? You have probably heard some disturbing statistics about small businesses. Only a small minority of new businesses established this year will still be operating five years from now. Even successful businesses usually take a few years before they can become profitable. A lot of these problems can be avoided or mitigated through proper budgeting.

Start by applying for an EIN the easy way

Before you can file a tax form for LLC taxes or any other business taxes, you need an EIN. An EIN (Employer Identification Number) is like a social security number, except for a business. The fastest and easiest way to get an EIN is to fill out an online EIN application. When you use GovDocFiling to fill out an EIN application form online, the site will send you a confirmation by email usually within an hour. This email confirmation will contain the EIN of your new business. You will then be able to take the next steps in getting your business started. For the EIN to be truly official, you will have to wait about four weeks to receive a confirmation letter by mail from the IRS.

Keep detailed records

The best way to keep your business within budget is to keep accurate records of your income and expenses. Accounting software can be helpful for categorizing your income and expenditures. The software makes it easy to see if your business is spending too much money on a certain type of expense. Another advantage of accounting software is that it makes it easy to show your tax preparer which of your expenses are tax deductible.

Saving time with online Tax ID forms and accounting software makes it easier for your business to save money. Be smart about budgeting when you’re forming and maintaining your corporation.