A friend of mine is looking to launch a small magazine business and is wondering what kind of account she will need to handle bookkeeping services? What are the basic rules she will need to know for bookkeeping records like software, etc? Also, would single entry or double entry be best?
First, the best entry system of bookkeeping is definitely double-entry and it is easy enough to purchase an off the shelf system that will handle the needs of a small enterprise. Two examples of such systems are Peachtree and Quickbooks, be sure to do an Internet search there will be plenty of good choices. Some of those software systems may be set up to complete the double entry for the person doing the accounting. Remember that the computer and software should be dedicated to the business if at all possible. The personal computer is a listed property item, so if the business vs. personal use slips to less than 50% then the actual deductibility becomes an allocation on the tax return. If the personal computer is not used very often then keeping detailed records and contacting your tax accountant are in order.
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