The Role of Accounting in Business and Why It is Important

The term accounting is common and is most heard during tax season. Before we get started on the importance of accounting, let us understand what it is.

What is Accounting?

Accounting comprises systematic and detailed records of the financial transactions of a business. There are several kinds of accounting, from the accounting of small businesses to the accounting of big corporations. This brief introduction now made, let us look into its importance.

What is the Importance of Accounting?

Accounting plays a crucial role in running a business. It helps businesses track their finances, allowing them to know where their money is going. The financial statements generated by your records offer the following:

- The income statement helps you to analyze the profit and loss of your business.

- With the help of a balance sheet, you get a clear picture of the financial position of your business on a particular date(s).

Keep your financial statements clean and up-to-date if you want your business to stay afloat. For professional help with maintaining this, you can find an accountant for the self-employed.

With professional services, you will be able to stay ahead financially, as they will help you in the following ways:

1. Income tax services for the self-employed can help you evaluate your business's performance.

2. Professionals can help you to create a budget and plan out future projections.

3. With the help of experts, you will be able to file your tax returns with accuracy.

4. You will get help with preparing and maintaining important financial reports.

5. A professional will be able to offer you the latest tax updates.

Conclusion

Accounting is a lot more than just “crunching numbers.” If you are looking to become prosperous in your business, then get in touch with Agro Accounting CPA to receive help with income tax services for businesses.

Taxes for Freelancers: All That You Need to Know

Freelancers are self-employed people who, basically, take up projects for various clients from the comfort of their home.  There are freelancers in various fields, including marketing, software design, social media handling, etc.  It becomes challenging for freelancers to take care of their finances and taxes on their own.  Furthermore, they barely have the time to collect financial data and to maintain a record of their expenses.  Consequently, freelancers can rely on an accountant for freelancers.

An accountant will be able to help a freelancer (like you!) in the most effective way. Not only will you get help with your bookkeeping and maintenance of financial records, but you will be able to get ahead of:

- Tax filing due dates

- New tax rules

- Filing an income tax return using the right forms

An accountant for freelancers will be able to help you. For professional help, you can rely on Agro Accounting CPA and get top-rated assistance.

All About the Airbnb 14-Day Tax Rule

If you are thinking about renting out your property and making some extra money but are worried it will cost you more than you will earn, then it is time to discuss taxes. No matter what is stopping you from renting out your property on Airbnb, there is a tax loophole that you need to know about.

The special 14-day rule will allow you the opportunity to not file taxes for your rental property. With this source of information in mind, you might not even need to report the income that you are making on Airbnb. This is the least you should know about Airbnb tax preparation and reporting.

Overview of the 14-Day Tax Rule

Tax rules are full of exceptions. But this exception is something you can refer to as a magical exception. To be precise, under this rule, you will not have to pay taxes on your income from short-term rentals. For this, you will have to meet a few conditions:

- You use the property as your residence for at least 14 days of the year

- You rent out the property for fewer than 15 days a year

There is also a drawback if you use this 14-day tax rule. It follows: if you happen to use this tax loophole, you will not be able to report or mention the expenses from renting out your place either. As such, you will not be able to reduce your taxable income in case of a rental loss.

This 14-day rule won't be applicable to someone who has a spare property and uses it as a rental regularly, but it is extremely helpful in other situations.

You can use this rule if you live in an area that hosts major events or attracts many tourists. It is one of the best Airbnb tax preparation tips that you can use to save some money. For more help with taxes, you can rely on the professional accountants from Agro Accounting CPA.