Paying Cash for Business Expenses

This is not necessarily a good idea, unless you have a Petty Cash account set up.  

As a small business owner, if you withdraw cash from your bank through the ATM, or inside the bank with a check and then pay for business expenses with the cash it may be impossible to prove that the money you withdrew was not a draw.  

I definitely have to advise against paying for anything major with cash.  Paying for improvements, equipment, rent, etc with cash is a good way for the person you paid to either come back and say that you didn't pay them (since there is no paper trail), or for you to claim it on your taxes as a business expense (since you most likely do not have a W-9 from them and cannot file a 1099).

Just a few things to think about before paying for your purchase with cash.

You can check out my website for more information or to contact me for additional topics.

www.kdhbookkeeping.com

Sunday Evening Insights

Happy Sunday.  Monday morning is just around the corner.  Another work week to get ready for.  This week is a good time to work on staying optimistic and believing in you.  If you are a small business owner it is even more important to believe in yourself.  As we all know, but sometimes decide to forget, is that our attitudes steer our direction.  A bad attitude and you're off to the start of a bad day.  It's not always easy, but when those tough moments hit I hope you take a moment and think about how the attitude and actions will affect your day.


On another note - do you have your 1099 and W-2 Forms?  You have until the end of the month to get these to your employees and contractor/contract workers. 
If you need help, or just need someone to take care of this for you We can help. 

Just remember, KDH is YOUR accounting solutions company.  We come to you and take care of your needs.

Make it a Great Week!

Keep smiling - it makes people wonder what you've been up to. ~Author Unknown