Accounting Things Confuse Me
Does anybody know a good web site that could help me in learning how to record all my records for tax purposes? I talked to my tax advisor last night and she kind of confused me and I want to make sure I am keeping records correctly. Thanks.
Are you familiar with excel? If yes, I would recommend that you document your transactions on an excel spreadsheet with the date, amount, and explanation of the transaction. At tax time or monthly if need be, provide this information to your CPA or bookkeeper.
I would not try to learn accounting just to save a few dollars. If you provide an organized spreadsheet to your CPA with good records, he or she can download this information into an accounting software program at minimal cost to you.
Or if you want to learn tax accounting purchase "accounting for dummies" at your local barnes & noble bookstore.
You may want to consider taking a 100 level accounting class at a local community college. I definatly think it would be beneficial!
reneeschultz,
I am a retired tax accountant. The detail necessary will depend on what aspect of real estate are you working? Buying & Selling, LO, Foreclaosures, Preforclosures, tax leins, etc. They will all need different information to ensure your tax returns are accurately figured. I would also advise meeting with your tax accountant at least quarterly. The underpayment penalities are too stiff to just hide and hope the end result will fall in your direction.
Planning for your tax return is an absolute must!
Hope this helps,
Debi