Roseville and Sacramento Accountant and CPA for LLCs
Cook CPA Group
Operating a successful limited liability corporation (LLC) requires dedication and the awareness of various factors that could affect your business. One of the most important factors in running an LLC is ensuring that your finances and expenses are properly recorded and maintained, which can seem like a daunting task. If you require accounting services for your business, you should consult with an experienced Roseville CPA for limited liability corporations.
At Cook CPA Group, we are dedicated to providing you with accounting services you need to operate your business successfully. Our firm understands the difficulty of running a business and staying up-to-date with tax regulations and other accounting practices, and we are here to work with you. To schedule a free consultation to discuss your business, contact Cook CPA Group at (916) 250-3851, or contact us online.
Accounting Tips for LLCs
Keeping a constant eye on your company’s financial situation is a necessary part of operating a successful business. While some business owners may elect to learn various accounting techniques as they go, mastering these techniques early will help your company operate efficiently and keep you out of tax troubles. The following is a list of accounting tips for LLCs.
Start a Business Bank Account
One of the first and important actions you should take when operating an LLC is to start a business bank account. Having a business bank account will make it easier to conduct business and to get your finances in order when it is time to file an income tax return for the LLC.
It is also important to note that commingling personal and business funds could have serious legal ramifications if you are sued. An LLC where the owner has mixed personal, and business funds may blur the lines between the business and the owner. This means the limited liability protection provided by the company could be invalidated under certain circumstances.
As you cannot claim tax deductions on your LLC income tax return, this is another reason to avoid commingling assets. Attempting to deduct personal expenses on your business’ tax return can also result in severe tax penalties.
Document Your Expenses
It is necessary to document all your company expenses to make it easier for yourself when tax season rolls around. There are various expenses that an LLC could use to secure a tax credit or a tax write-off. One method for keeping track of your expenses is to use your business bank account for all business-related purposes. This will give you a digital paper trail that is easier to handle than dealing with dozens of physical receipts.
It is also important to choose the accounting method for your business. One of the most popular methods is the cash basis accounting method which is typically utilized by small businesses. Cash basis accounting method is when a company records income when a client pays their bill. For example, if you perform a landscaping job for a client in August and the client does not pay you until September, you will record this income in September when you received the payment.
Large businesses often use the accrual basis accounting method. Alternatively, to the cash basis method, the accrual basis records income when it is earned. For example, the payment for your landscaping job would be recorded in August instead of when you received it in September.
There are pros and cons to each of these accounting methods, but our firm can help you choose an accounting method that makes sense for your business.
Maintain Accurate Inventory
Maintaining proper inventory records is needed for practically every business. If you lose track of the inventory for your LLC, you make it easier for theft to occur and for fraudulent expense reports to be generated. If you are unsure of how to create a system to maintain your inventory, our CPAs can help you develop a strategy that works for you.
There are various other accounting tips that a business owner should know about if they want to operate their business efficiently. Cook CPA Group provides businesses in California with a wide range of services:
- Financial statement audits
- Small business accounting
- Tax preparation and planning
- Strategic business planning
Our accountants are experienced in various industries from agricultural businesses to law firms, and we are ready to work with you.
Work with Our Experienced Sacramento Accountants for LLCs
If you need assistance managing the tax liabilities for your LLC, you should contact an experienced Sacramento accountant for LLCs. At Cook CPA Group, our CPAs possess decades of combined accounting experience, and we would be proud to use this experience to represent your business. To schedule a free consultation to discuss tax liabilities for your company, contact Cook CPA Group at (916) 250-3851, or contact us online.