[Jewelry making - Article 00359] - Re: [Orchid] [Biztalk] Taxes - First Sch C

[Kimberly Starbard]

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Hi Kim:

>     What types of things need to be set up first before you can
>     approach an accountant to do your taxes instead of doing them on
>     your own for instance? 

    I'm probably not going to call myself a seasoned professional, even
    if I live to be 104 and work with jewelry for 70 years or so, but
    here goes anyway. 

    I can't speak for all accountants, but, normally, they will ask you
    for back-up (proof) of the first few accounts on your balance sheet.
    it is not necessary for you to know how to prepare a balance sheet,
    though. The first account is always cash, so you need to provide all
    of your bank statements. The next account would be accounts
    receivable so, although your accountant probably won't need to see
    all of them, you will need to have invoices to back those up. The
    next would be inventory. You need all receipts for inventory you
    purchased thru the year. FYI amounts spent for tools and small
    inventory items below a certain dollar amount can be expensed in the
    year purchased. Not everything has to go to the inventory account.
    Please check with your accountant to see what you can write off. 

    You also want to be able to account for payroll. You'll want to
    provide any quarterly sales tax, payroll tax and whatever tax that
    you prepared. 

    It's really not as bad as it sounds, but please become familiar with
    as much as you can. I have a degree in accounting and, because of
    this, I consider myself to have a certain advantage over those who
    don't. They make those darn tax returns so hard to read and thank
    goodness I can do that! 

    If you are small, invest in a quickbooks or similar program. if you
    have doubts about what to get, ask a CPA. I can't stress how
    important it is to have a qualified person advise you on your tax
    status. This is money you earned, don't give it away in missed
    deductions and errors. 

    If I missed anything, please feel free to chime in. 

Best of luck,
Kim Starbard
Cove Beads


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