WEBVTT
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The topics and opinions express in the following show are
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solely those of the hosts and their guests and not
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those of W FOURCY Radio. It's employees are affiliates. We
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make no recommendations or endorsements for radio show programs, services,
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or products mentioned on air or on our web. No
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liability explicitor implies shall be extended to W FOURCY Radio
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or its employees are affiliates. Any questions or comments should
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be directed to those show hosts. Thank you for choosing
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W FOURCY Radio.
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Barry G.
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Fowler EA brings you tax talk for you right here
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on W four CY Radio and Talk for TV. As
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an enrolled agent and a national leader in tax resolution
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as well as Trucker bookkeeping.
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And tax planning.
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With over thirty years of experience, Barry will break down taxes, bookkeeping,
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tax planning, and tax relief for individuals and businesses just
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like you. So let's have some tax talk for you
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with your hosts.
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Barry G.
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Foul Hey, welcome to text Talk for you. I am
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Barry Fowler. I'm here having fun today. I know everybody's
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trying to keep more of It's going to be a
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very cold day across all of the United States. But
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it's also going to be a great day and inauguration day,
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watching the change of hands of power from one party
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to the next party and getting set for what's going
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to happen over the next four years, which will be
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very interesting, very fun, and hopefully very prosperous four years
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for everybody. Today, we want to talk about bookkeeping and
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taxes and one of your questions. We had a great
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show last week, had a lot of questions come in.
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Some we could get to, some we couldn't, and we
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answered a lot more off the air, But this is
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question to answer. If you've got questions, you can call
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in at five six one six two three nine four
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two nine again five six one six, two three nine
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four two nine or texture questions in and we'll answer
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these on air. You know, we we'd like to start
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out what is bookkeeping? You know that term bookkeeping, It
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actually refers to the everyday practice of entering your business
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transactions into some structured accounts. It can also mean various
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ways you can capture these things automatically, you know, using
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UH software. And you know there's a lot of reasons
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why you know, bookkeeping is very critical to your business
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such as you know, knowing where your financial position is,
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knowing how your business is is doing, helping you to
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go out to be able to get a loan or investors.
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All that helps you. When you have good, you know,
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bookkeeping and you're keeping records, and your bookkeeping should consist
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of you know your profit and loss and your balance sheet.
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It shouldn't be what we've seen out there in bookkeeping.
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It really shouldn't be a cash flow statement. Yes, you're
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gonna if you use the right software and everything you
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can pre you know, go ahead and rent out and
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look at a cash flow statement shows hey, beginning cash
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balance and shows what happened to get to your ending
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cash balance, But that does not provide you the best
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way of looking at how your business is doing. Getting
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an actual financial statement provides you with the records you
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need to see how well my business is operating. So
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one of the other questions we get that comes in
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is what are the best ways for a small business
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to use a bookkeeping service? Or how should I do
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by bookkeeping well? Systematically recording organizing financial transactions is what
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you're using to get to your bookkeeping records, whether that's
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your bank statements or credit card statements. You're a truck driver,
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you're probably getting settlement statements or maybe you're invoicing out there,
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and then establish a chart of accounts and how you're
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going to record everything in there, and then reconciling your
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bank statements, your credit card statements, and then you can
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produce a financial statement. And we're moving to probably a
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really good software that we've seen out there, and probably
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one of the easiest and the best to use right
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now is zero software x E ro O. You can
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reach us at truck ortax tools dot com and we
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can let you in a little bit let know a
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little bit more where to find Zero. It's an online product,
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but it seems to be working really well, and it's
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actually better than some of the other online products out there.
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And so if you reach out to us, we can
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actually talk to you and figure out what's best for you.
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So when I was talking to somebody else the other day,
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they were kind of wanted to do it yourself bookkeeping
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and you know, listen to one of our other podcasts
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about you know, what makes up good bookkeeping? What do
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you need to make sure you got all the deductions?
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But then they asked us, you know how do you
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keep books for a business? Well, teaching book keeping, teaching accounting,
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you can go to school for that. You know, there's
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colleges out there. If you really want to learn how
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to do it, that's a great way to do it. Hey,
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I have seen online services out there that say, hey,
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I can you know, we can make you a bookkeeper
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in let's exaggerate thirty minutes. They say anybody can be
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a bookkeeper. Well that's not true. You know, we've seen
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people that try to get into this business and they
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have no clue of what they're doing. They have to
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go in and record, you know, your income, They maybe
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record what expenses they see, but they have no clue
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what they're doing in this industry. So you need to
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find somebody that has experience. If you're trying to do
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it yourself, you know, you should be keeping track of
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all your receipts and preserving them. You should be keeping
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tabs and all you're spending, where your money is going,
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and then save receipts for everything you buy. And an
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employee a bookkeeping method, whether it's using zero or maybe
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you're using a spreadsheet. Spreadsheets a little bit more difficult
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if you're trying to keep a true financial statement such
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as a profit and loss and a balance sheet, and
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then you're going to need to know if you're trying
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to do true accounting bookkeeping, you're going to have to
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understand how does a balance sheet work, and what should
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be on the balance sheet, and what should be in
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your profit and loss including not just your income and
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your expenses, interest, expense and depreciation and all that should
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be going into what's in your financial reports. So you know, basically,
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sometimes this gets really difficult, and it is a lot
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harder than what people think. You know. Funny story is
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is I've got somebody that came to us and talk
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to us about doing bookkeeping and said, now, you know,
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we're way too expensive. You know, we keep things very
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reasonable for truckers out there at Trucker Tax Tools. You know,
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we started it close to only you know, twenty five
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dollars a week, and so we keep it reasonable just
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to do bookkeeping for you. And you know, the guy
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would say, hey, this is just way too much. I
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can do this myself. I said, agreeing it, you know,
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hey you can, good luck, go do it. He decided
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to do. And spreadsheet came back to us and wanted
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us to do taxes the next year. And I looked
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at him and I went, you sure this is right? Yep,
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it's absolutely right. I had to kind of shake my
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head with him, and when you know, I can look
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at this, this is what you're showing me, and it's not
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correct in any way, shape or form. What do you
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mean I've insulted. I've spent a lot of time on this.
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I'm sorry, but let me just ask you a question.
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You spend one hundred and fifty thousand dollars in fuel
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even number one five zero zero zero zero. Is that correct? Well,
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of course it's correct. It's my number. And your gross
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revenues from driving the truck were seventy five thousand even,
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so you spend a seventy five thousand dollars more in
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fuel then you collected to run your business. And as
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before you made your truck payments, you paid insurance, or
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paid anything else, you lost seventy five thousand dollars just
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running your truck fuel and fuel out for this money income. Well,
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that's the numbers I came up with. Well, it doesn't
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make sense. So he had to go back to the
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drawing board to figure this out and say, hey, this
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is wrong. He came in with a bunch of round numbers,
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and I went, this is just a guess, isn't it. Well, yeah,
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I said, we can't do that. We cannot do your
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taxes on a guess. You need actual records. So he
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did end up hiring us, and we went in and
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did full bookkeeping for him to get everything correct, get
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him a set of books. And he looked at me
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and went, why didn't I do this begin with? Because
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this seems a lot easier giving you guys information, bank statements,
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credit card statements and everything else than it was for
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me to sit down and try to do this in
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what little time I have. And we looked at him
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and when we said, yes, we know you're a trucking business.
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We specialize in you and have our systems designed around you,
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knowing that you sitting in a truck and driving or
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doing what you do best, versus us sitting here doing bookkeeping.
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You know, I'll be honest, last thing you want me
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to do is drive an eighteen wheeler down the road. Yeah,
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I'm good at my Ford f one point fifty getting
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out there around the road and maybe even pulling a trailer.
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But sitting in a big eighteen wheeler. You don't want
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me back there. I don't want you to doing bookkeeping
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our taxes either. Hey, when we come back after this break,
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we're going to talk about what are some of the
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best practices for hiring a bookkeeper for your small business.
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And we'll be right back after this.
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We have only scratched the surface of today's show. Please
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stand by as Barry G. Fouler will be right back
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with tax talk for you. If you owe the IRS
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or are going through an IRS audit, don't go at
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it alone.
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Call Taxation Solutions Tax.
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Relief at eight eight eight nine three zero one zero
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one six. We are your solution for IRS debts, audits,
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back taxes, garnishments, leans and levees. Whether you're an individual
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or business, you need a solution and a strong, aggressive
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tax resolution. Don't let the IRS walk all over you.
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Stop the IRS now. Call eight eight eight nine three
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zero one zero one six or go to Taxationsolutions dot
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net now for a free no obligation consultation. Let's get
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back to tax stock for you with more tax stock
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once again. Here's your host, Barry Gallery.
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Hey, welcome back. Hey. I like we're starting to get
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a few questions here. Somebody asked the question of let's
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see who that was, Claudia. How much does a bookkeeper
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charge permon month? Well, you know, it's really going to
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vary depending on your industry, the amount of business that
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you do, and you know a number of transactions that
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you may have. You know, every bookkeeping service fill price
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there bookkeeping differently. I know, when we're pricing, like for
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truck or tax tools, we're in a price based on
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you know, how many bank accounts or credit cards. You
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have a number of trucks that you have out there
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on the road, So we kind of judge based on
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that and how much business you're doing, and then we
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can adjust from there to make it makes sense. But
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if you're hiring like a part time bookkeeper for your
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small business, it could be four hundred to eight hundred
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monthly for basic bookkeeping. If you want somebody full full time,
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not including benefits, it can go from maybe three thousand
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to forty five hundred simple bookkeeping needs. You can expect
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to pay you know, anywhere from one hundred to twenty
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five hundred a month for outsourcing to a business that
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does the bookkeeping for you. And munch of the bookkeepers
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that are out there do a lot of after the fact,
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and that means that if you got invoicing, they're not
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doing invoicing or paying your bills for you. They're just
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keeping track of your income and expenses after the fact
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for you, and that keeps your bookkeeping costs of lower
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as well. But if you want somebody working full time
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or part time for you, you know, you can expect to,
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you know, pay them anywhere part time four hundred, eight hundred,
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and then again, you know, full time, it could be
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anywhere from three thousand to forty five hundred, depending on
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the qualifications of the bookkeeper and what you actually need
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in your business. So what are the best practices for
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hiring a bookkeeper for your your business? And Number one
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is knowledge knowledge of accounting and bookkeeping. They don't have
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to be a college graduate in accounting, but it would
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be nice that they have, you know, some basic knowledge
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of accounting when they're getting into bookkeeping or they're going
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to be working, you know, for you, and you know,
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when you're going out there, and let's say you're going
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to employ a freelance bookkeeper, you want them to be familiar,
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you know, with your business. Uh, you want them to
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be familiar and have you know, a little bit of
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good experience dealing with the software that you're planning on using.
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You know, whether it happens to be zero or whether
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it happens to be quick Books, SAGE or some of
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the other softwares that are out there that you could
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use for your bookkeeping. You know, if you're looking to outsources,
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what you need is to find somebody that has you know,
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UH enrolled agent, CPA accountant that actually knows about your industry.