Accounting and Bookkeeping: Financial Compliance in the US

When operating a company in America, keeping regular and accurate accounting records is a legal requirement. IRS (Internal Revenue services" class="text-teal-600 hover:text-teal-700 font-medium underline decoration-teal-300 hover:decoration-teal-500 transition-colors">Service) and state tax offices expect all income and expenses to be documented. Basic accounting software for small businesses includes platforms like QuickBooks, Xero, and FreshBooks. These software include features for invoice creation, expense tracking, bank account integration, and tax reporting. It is recommended to keep your accounting records for at least 7 years. Basic accounting principles include matching principle, accrual basis, and cash basis accounting. LLCs typically use cash basis while larger companies prefer accrual basis. Payroll management is a separate area of expertise and includes complex calculations such as employee salaries, tax withholdings, and social security payments. When preparing annual tax returns, Form 1120 (Corporation), 1065 (Partnership), or Schedule C (Sole Proprietorship/Single-member LLC) is used. Working with a professional CPA (Certified Public Accountant) ensures you maximize tax advantages and avoid legal issues.