Accounting for electronic repair companies
As an electronic repair shop owner, you are likely enthusiastic and knowledgeable about all things electronic device-related. People turn to you to repair their cellular phones, televisions, laptops, etc. As electronic technology is becoming ubiquitous in many parts of the world, electronic repair shops have great potential for growth. Part of owning a successful electronic repair shop is understanding the bookkeeping for electronic repair companies.
What Is Entailed in Bookkeeping for Electronic Repair Companies?
Accounting for electronic repair companies requires the use of five basic types of accounts. These are:
- Liabilities: This lays out the debts or obligations that your business owns. Examples include accounts payable or any loans you have.
- Assets: These are the resources and cash that your business owns. This could include inventory or accounts receivable.
- Income or Revenue: This is the money that your business will earn from repairing electronic devices or through sales of products and other services.
- Expenditures or Expenses: This is money that flows out of the business to pay for items or services, such as employee salaries, utilities, renting the building, etc.
- Equity: This is everything is left over after you take all of your assets and subtract your liabilities. This includes owner held interest in the business, such as stocks or retained earnings.
Accounting for electronic repair companies starts when you or your CPA for electronic repairs companies sets up the different accounts you need to record all your transactions in the correct categories Your electronics repair company won't have the same accounts as the electronic repair company down the street, but most small businesses have several accounts in common.
Things to Consider When Laying out Tax Planning for Electronic Repair Companies
Many small to medium electronic repair companies feel more comfortable having a qualified tax professional or a CPA for electronic repairs companies managing their tax situation. However, some more adventurous business owners may choose to handle their taxes on their own.
No matter how you handle your tax situation, you want to have a legal structure and tax planning strategy for your electronic repair company that allows you to take advantage of credits and deductions available for your business type.
For example, a financial adviser for electronic repairs companies may encourage the clients to claim the health care tax credit. If your business has less than 25 full-time employees, you pay an average of less than $50,000 per year, and you pay at least 50 percent of your employees' health insurance premiums, you may qualify for this option.
Another strategy could be to take advantage of the section 179 property deduction. If your business qualifies, you may be able to include up to $500,000 in eligible business property. You are only able to deduct the full amount in the year that your business started using the new property. This deduction could work well for you if you have recently moved or if you acquired a new property that you are using for manufacturing, business, research, or transportation.
As you may have deduced, having the correct information and resources can maximize your savings potential. But if you're not a tax expert it can be challenging and time-consuming to capitalize on such opportunities. Our team of accounts understand your dilemma and are here to help. We are located in Atlanta, Georgia but extend our helping hands to businesses throughout the country. We offer CFO advisory for electronic repair companies. Part of our role as a financial adviser for electronic repair companies includes helping our clients understand accounting as it pertains to their business. We assist with bookkeeping and tax planning and offer industry-tailored financial advice . You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.