tash pop
03-31-2007, 11:11 PM
Let me say up front I'm not an accountant. I've been running a hosting company since 03. I've learned alot of things alongs the way and wanted to share my experience to help others avoid some pitfalls and FFWD the learning curve.
1. Don't put accounting on the back seat. Accounting and finances are the very important part of running a hosting business. Mistakes in this area can be very COSTLY and can set you back alot (even break you).
2. Learn about taxation. Thoroughly research this subject. Make sure you learn as much as you can.
3. Once you go through step 2 and learn about the subject, don't ever think you KNOW IT ALL. Never undertake this all by yourself, always work together with your accountant. Accountants are so much more usefull if you're familiar with the subject and if you can ask them the right question. Then you'll get the best results.
4. Everything you sign and submit in regards to your personal or company taxation is YOUR responsibility. Not your accountants. That's why it's important to understand this subject because your butt is on the line if something is off.
5. Don't pay tax through your accountant, pay it directly to IRS. Why? Just a precaution. I've heard many horror stories about clueless business people being screwed over by their accountants (they send them the cheque to $xyz whereas their tax i $abc and the rest they pocket).
Horror story: On 2 occassions, 2 seperate accountants miscalculated my tax duty by ~10K (over). If I'd not known anything about the subject it would've cost me 20K. But because I was familiar with the subject I'd spotted the miscalculation and brought it to their attention. They then said 'oh yes you could do it that way..." Why this happened? Who knows... maybe it was a human error. Maybe they didn't bother too much about trying to save me tax but just took the easier (more costly) route.
2 main points
1. learn all you can about the subject
2. don't go it alone use the professional to help you with all this. At the same time don't let the professional go it alone:)
Hope this helps and hope you'll all give input on your own learning experiences.
1. Don't put accounting on the back seat. Accounting and finances are the very important part of running a hosting business. Mistakes in this area can be very COSTLY and can set you back alot (even break you).
2. Learn about taxation. Thoroughly research this subject. Make sure you learn as much as you can.
3. Once you go through step 2 and learn about the subject, don't ever think you KNOW IT ALL. Never undertake this all by yourself, always work together with your accountant. Accountants are so much more usefull if you're familiar with the subject and if you can ask them the right question. Then you'll get the best results.
4. Everything you sign and submit in regards to your personal or company taxation is YOUR responsibility. Not your accountants. That's why it's important to understand this subject because your butt is on the line if something is off.
5. Don't pay tax through your accountant, pay it directly to IRS. Why? Just a precaution. I've heard many horror stories about clueless business people being screwed over by their accountants (they send them the cheque to $xyz whereas their tax i $abc and the rest they pocket).
Horror story: On 2 occassions, 2 seperate accountants miscalculated my tax duty by ~10K (over). If I'd not known anything about the subject it would've cost me 20K. But because I was familiar with the subject I'd spotted the miscalculation and brought it to their attention. They then said 'oh yes you could do it that way..." Why this happened? Who knows... maybe it was a human error. Maybe they didn't bother too much about trying to save me tax but just took the easier (more costly) route.
2 main points
1. learn all you can about the subject
2. don't go it alone use the professional to help you with all this. At the same time don't let the professional go it alone:)
Hope this helps and hope you'll all give input on your own learning experiences.