Bookkeeping

Bookkeeping for For-profit businesses are used to provide reports for;

1. State and Federal Taxes (revenue and expenses)

2. Projecting possible future expenses

3. Making decisions based on the Profit and Loss report to increase income and scale.

4. Tracking Assets and Liabilities of the company.

etc.....

Unlike non-profit's, For-profit businesses need to keep records of business expenses that are tax deductable. Every business should analyze their Profit and Loss statements and strategize future financial decisions so they are using the advantages business owners have that employed individuals do not.

Example;

Innovative Native Services mainly operates its business at home in a home office. But, they pay monthly rent and utilities from their personal checking account.

*** They did not know that Home Office expenses (including rent and utilities) are tax deducatble if the office is the main place of operation.***

Strategically using your business to pay the rent, utilities, and supplies for your home office will benefit you and your business when filing taxes.

Non-profits are generally more demanding when tracking revenue and expenses. Tracking the in's - and -outs of the business, other then being used to report to the IRS, are needed to report to outside institutions who have awarded funds to the business. Because most of the revenue of a non-profit is received via Government, State, or Private grants, detailed reporting of expenses per funding source is critical.

501 (c3) businesses NEED to track multiple things simultaneously, for example

1. Funding sources - How much did the business receive and where is every penny being spent.

2. Projects/Programs - What and how many grants will be funding the project/program.

3. Contributions and Unrestricted funds - How are these allocated and are they used to offset projects that went over the budget?

etc..........

Inaccurate reporting can lead to inaccurate future projections.

We use Quickbooks to track these individual reports with the use of the Class, Location, Project, Chart of Accounts and other amazing features.