Paying taxes question

Discussion in 'Starting a Lawn Care Business' started by Grits, Nov 4, 2006.

  1. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    If you do not show a profit for the year, do you have to file?
     
  2. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    yes, The IRS still wants to see:)
     
  3. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    Well, CRAP! I am not sure I want to see how far in the hole I am! I just won't let the wife know.:)
    I guess I need to get everything in order....:dizzy: What a pain! Oh well, that's part of it.
     
  4. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    Any advice on getting started preparing for taxes?
     
  5. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Hate to say it but prep needed to start from the first purchases you made.
    Round up all your reciets from everything you spent money on. Produce an income statement. Set an appointment with your accountant:)

    On Dec 31st go buy Quickbooks (or something like it)and next year use it to keep track of every penny. That way next years taxes will be a lot easier
     
  6. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    Good advice, except December 31 is probably too late. You want to up and running by January 1. Getting QB, or any other program, will take some time to setup. Allow yourself the time to do it right so that you are not trying to learn the procedures while you are busy with your business.
     
  7. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    I have all my receipts in anticipation of this. I just don't know what to do with them!:hammerhead: So I just need to take the receipts to my accountant and then go from there....? PM, Do you use QB? Do you think the basic QB will be sufficient for right now...being a small operation (at the moment). Should I just bite the bullet and get both Gopher and QB? Thanks for all your help! This is the part that I have been dreading.
     
  8. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    I use QB because I use it for a few different business and Gopher would fall short of what I need, But I did use Gopher for the schedule part and played with the banking and billing part. For a LCO only business it will work fine, I think you may be OK to try that first and see how you like it.
    Roger is right about starting early, (he so technical:) my point was to do it before Jan 1 so all of next year is on it:laugh: )
    I feel the learning curve will be easier than QB and you get the schedule part that converts right into invoices. very easy and saves time
     
  9. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    Thanks PM! I will go ahead and get gopher this week.
     
  10. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Make a spread sheet of all your expenditures and group them. I.e. Bark, Fertilizer, Repairs, Equipment, Hand tools, Fuel truck, Fuel equipment ect.
    This will save you money if your accountant doesn't have to. Then have your earnings statement( the money you took in).
    Make sure on your equipment you only average them out enough to keep you at zero profit. don't take a loss if you don't have to because as you grow you will need these to be deducted.
    Be prepared to pay around 300 for your first taxes, after that you can figure out what you can do as opposed to your accountant.
     

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