The first comes from @lifealamode, a local blogger:
How do I keep myself and my little business organized through the year so I'm not scrambling when it's time to file my taxes?
The easiest thing is to first set up a computerized program (Quickbooks is good or Quicken) so every day or month or however you schedule your banking, you are assigning accounts to whatever you’re spending money on so at the end of the year you have everything totalled.
I think Quicken might be free, at least for first year, and there are online programs you can use on the run too so you don’t always have to be strapped to your computer. Definitely scan documents - organize your receipts or anything you have to show if you ever have to justify your cost of goods or supplies. That way if/when the government decides to audit you, you're ready to show them what they need to see. Most of us can barely remember what we did last month, let alone what we've spent every penny on in the past year, so it's just best to keep documents scanned and eliminate any chance of misplacing or losing things.
You can then use the scanned documents and start the way you plan to continue. Now, I'm not personally big on spreadsheets because those can get overwhelming. Plus you have to manually input details into it. They don’t download easy from bank accounts either. For example, SunTrust statements download right into Quickbooks so that's extremely helpful.
So that’s the easiest way to keep a small business organized - Get computerized.
**
What advice would you give to someone starting their own business?
I work closely with individuals who are entrpreneural as well as people who are starting up their own businesses. The three main things to keep in mind are:
1) Create a business plan - know what you want, where you want it to go, have an outline. How are you going to make money with your business? Immediate, short and long term goals? What do you have to offer that makes you unique? Figure that out, put it on paper and you're setting yourself in the ideal direction.
2) Make sure you sit down with a lawyer or an accountant. I will know all the taxes and licensing required when you open a business, and obviously the lawyer deals with legalities of owning a business. This way you are fully aware of what you're about to get yourself into and you avoid ever paying paying penalties and/or interests. What a lawyer may tell you vs an accountant is different so if you can, meet with both. It really is worth the up front investment rather than paying a lot more later on.
What kind of business are you running? Sole propriertorship? LLC? Employee? Draw? What kind of taxes go along with that? Will you need a sales tax number? Federal tax ID? All those things need to be established before you open your doors. Know how you’re going to do those things so you know what’s going on.
The initial investment in a good lawyer or accountant will save you more time and money in the long run.
* When you make good decisions in the beginning you’re going to pay a lot less taxes later. This applies to every single business, small or big. Lastly...
3) How are you going to afford to go into business? Along with your business plan, make a financial outline. Have an idea of what you can vs. what you need to spend, same with what you expect to make. Lately, a lot of people are losing/closing their business because they weren't prepared to slow down. You can't expect to make money consistently 100% of the time and you have to have fall backs. Can you afford to make employee reduction? What is your Plan B to keep your doors open and your business running. Can you, if you need to, get back to the bare bones of the company if business dropped off enough and what steps would you take to keep going? How are you going to pay your own bills?
These are what I personally think and it's not all of the advice I have for budding business owners but they are the three that really stick out when I'm asked that question. I hope this helps your endeavors! And come back soon for more Ask Dr. Friday!
1) Create a business plan - know what you want, where you want it to go, have an outline. How are you going to make money with your business? Immediate, short and long term goals? What do you have to offer that makes you unique? Figure that out, put it on paper and you're setting yourself in the ideal direction.
2) Make sure you sit down with a lawyer or an accountant. I will know all the taxes and licensing required when you open a business, and obviously the lawyer deals with legalities of owning a business. This way you are fully aware of what you're about to get yourself into and you avoid ever paying paying penalties and/or interests. What a lawyer may tell you vs an accountant is different so if you can, meet with both. It really is worth the up front investment rather than paying a lot more later on.
What kind of business are you running? Sole propriertorship? LLC? Employee? Draw? What kind of taxes go along with that? Will you need a sales tax number? Federal tax ID? All those things need to be established before you open your doors. Know how you’re going to do those things so you know what’s going on.
The initial investment in a good lawyer or accountant will save you more time and money in the long run.
* When you make good decisions in the beginning you’re going to pay a lot less taxes later. This applies to every single business, small or big. Lastly...
3) How are you going to afford to go into business? Along with your business plan, make a financial outline. Have an idea of what you can vs. what you need to spend, same with what you expect to make. Lately, a lot of people are losing/closing their business because they weren't prepared to slow down. You can't expect to make money consistently 100% of the time and you have to have fall backs. Can you afford to make employee reduction? What is your Plan B to keep your doors open and your business running. Can you, if you need to, get back to the bare bones of the company if business dropped off enough and what steps would you take to keep going? How are you going to pay your own bills?
These are what I personally think and it's not all of the advice I have for budding business owners but they are the three that really stick out when I'm asked that question. I hope this helps your endeavors! And come back soon for more Ask Dr. Friday!
No comments:
Post a Comment