Individual Bookkeeping

 

Individual Bookkeeping

 

Naturally, if you have a checking account, you balance it on a regular basis to adjust for discrepancies between the amount on your statement and the amounts you recorded for deposits and checks. Many people only do this once a month when they receive their statement in the mail, but if you're the type of person whose banking frequently eludes you, you can now do it every day thanks to the development of online banking.

In order to identify any charges in your checking account that you haven't noted in your checkbook, you balance your checkbook. ATM costs, overdraft fees, special transaction fees, and low balance fees—if you have to maintain a minimum level in your account—are a few examples of these. In order to record any credits that you haven't previously recognized, you also balance your checkbook. These could be electronic deposits, refunds, or automatic deposits. It's possible that your checking account earns interest, in which case you should keep track of any money you receive.

It's also important to find out if the bank or you have made any mistakes in your records. 

The annual federal income tax return filing is another type of accounting that we all detest. While some people file their taxes on their own, many hire a CPA. The majority of forms contain the following:

Income is the whole amount of money you have received from your job or assets, unless you are specifically exempt from paying income taxes.

Personal exemptions: these are the income levels that are exempt from taxes.

Standard deduction: You can lower the amount of money that is taxable on your income by deducting certain business or personal expenses. These costs consist of things like property taxes, charitable contributions, and interest paid on your mortgage.

Taxable income is the remaining amount of income, after personal exemptions and deductions, that is subject to taxes.