START-UP New Business. 8/8. Enhancing business skills: Taxes, Depreciation and more. By Steve Carver скачать в хорошем качестве

START-UP New Business. 8/8. Enhancing business skills: Taxes, Depreciation and more. By Steve Carver

START-UP New Business. 8 of 8. Enhancing business skills: Taxes, Depreciation, Deductions, Record Keeping, Selling Skills and more.. Presented by Steve Carver COURSE: “How to start, grow, expand my own business or side hustle.” Part 8 of 8: Record Keeping – Depreciation - Taxes - Selling Secrets Compilation of tips and strategies based, first, on the personal businesses and life experiences of the presenter’s 63 years in business; plus, other items discovered through Internet research of hundreds of articles from other contributors. Presented by: Steve Carver, Fast Forward Services, Inc. Email: stvcarv@aol.com, Telephone: 919.902.0522, All copyrights reserved. 2026. Part One: Record Keeping Record keeping: Always have an offsite backup system for records. Accountant records: Make sure they are keeping the records. Flash drives. Offsite software, Offsite storage. Records to keep permanently ● Articles of Incorporation, LLC agreements, etc ● Accountant audit reports ● Copyrights and patents and trademark registrations ● Capital stock and bond registers Deeds and Mortgages ● Depreciation schedules. Year-end financial statements and trial balances ● Licenses and permits ● Tax returns and related tax documents Records to keep at least seven years ● Accounts payable and receivables ledgers or computer records, bank statements ● Bills of Lading, cash books ● Contracts and leases ● Employee personal records after termination ● Expense reports ● Employment tax records ● Inventory records ● Purchase orders ● Sales tax returns ● Invoices ● Payroll records ● Canceled checks for important payments, such as property taxes Tax help from FEMA after a disaster. The key is your area being declared a disaster area by the federal government. SUDDEN & UNFORESEEN casualty losses can be claimed as deductions provided they meet the IRS guidelines. Includes natural or man-made fires, burglaries, thefts, storms, tornadoes, floods, hurricanes, mudslides, vandalism and drought (if sudden). See publication: IRS # 547 Part Two: Depreciation A reduction in the value of an asset with the passage of time, due in particular to wear and tear. Assets such as machinery and equipment are expensive. Instead of realizing an asset's entire cost in year one, companies can use depreciation to spread out the cost and generate revenue from it. This is done through depreciation, which allows a company to write off an asset's value over a period of time, notably its useful life. It may be used to account for declines over time in the carrying value, which represents the difference between the original cost and the accumulated depreciation over the years. In other words, the term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used. Depreciating assets helps companies earn revenue from an asset while expensing a portion of its cost each year the asset is in use. Not accounting for depreciation can greatly affect a company's profits. Companies can also depreciate long-term assets for both tax and accounting purposes. Points to remember: 1. Depreciation is taken regularly so a company can move the asset's cost from the balance sheet to the income statement. 2. When a company buys an asset, it records the transaction as a debit to increase an asset account on the balance sheet and a credit to reduce cash (or increase accounts payable), which is also on the balance sheet. Neither journal entry affects the income statement, where revenues and expenses are reported. 3. Depreciation ties the cost of using a tangible asset with the benefit gained over its useful life. 4. There are many types of depreciation, including straight-line and various forms of accelerated depreciation. 5. Accumulated depreciation refers to the sum of all depreciation recorded on an asset to a specific date. 6. The carrying value of an asset on the balance sheet is its historical cost minus all accumulated depreciation. 7. The carrying value of an asset after all depreciation has been taken is referred to as its salvage value. See video and study guides for more details. Thank you.