The good news is that you are asking all the right questions in the
beginning rather than years down the road.
1. You do not need accouting software to be elligible for tax savings.
Although many small software programs will offer you many more
features to help you manage your growing companies needs.
2. Should you incorporate? I would need to know information before
making recommendations in this area. Since you don't currently have
employees and the only financial risk is that of your own, I would be
likely to lean towards a Sole Proprietorship. That entity choice
would also allow you to add employees in the future as your needs grow
with little requirements.
3. What would a CPA charge? A general consultation is usually free.
That will allow you to discuss your needs and for them to access what
services they can provide you with. At that time they should be able
to quote you for those services. I recommend finding a company that
specializes in small business and/or the area of business you have
selected.
Please contact me if I can assist you further:
QB Consultant
"" <> wrote in message
news:<>. ..
> First. let me state that I have very little knowledge of accounting
> practices.
>
> I have just started a small internet business in my basement. I buy
> materials and process them into other products and sell them online.
> I have no fixed vendors and my customers are constantly changing. I
> have no employees.
>
> I feel that accounting software such as Quickbooks or Peachtree is
> overkill for my small business which will be around 5-10K per year.
> Especially since I have no permanent accounts - either payable or
> recievable.
>
> I have been tracking my expenses and sales in an Excel Spreadsheet. I
> am told that I can take tax deductions such as phone lines, vehicles,
> electricity, computer, etc..
>
> Some questions I have are:
>
> Do I really need acounting software or can I just use my expense and
> sales records for tax purposes?
>
> Should I incorporate?
>
> Can I deduct business expenses without incorporating?
>
> What advice do you offer to save me tax dollars?
>
> About how much would a CPA charge to advise me?
>
> About how much would a CPA charge to handle all my accounting needs?
>
> Lucky
