Start up accounting -med- 9-15-10
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Transcript of Start up accounting -med- 9-15-10
What you need to know from “Day 0”™
Presented by: Katrina M Harrell, President of The KM Harrell Group, LLC
CEO & Founder, Your Simple Bookkeeper, Inc.www.yoursimplebookkeeper.com
Present:
The KM Harrell Group, LLC Online Business Development & Management Consulting Firm Headquartered in Clayton, NC. Get “unstuck” and transform your vision into reality with sound,
practical business management practices as well as innovative business development ideas and strategies. “Our passion becomes your inspiration. Our knowledge becomes
your foundation”
Your Simple Bookkeeper, Inc. Innovative bookkeeping and accounting firm Build on a model of providing web-based virtual bookkeeping services
to micro and small businesses. Our fees start as low as $35 per month and include services not typical of
accounting and bookkeeping firm.
FREE Webinars
Weekly Live Internet chat
Affordable High-Quality bookkeeping services
Monthly newsletters
Bookkeeping tips via Facebook, Twitter, blogs, vlog.
Web-based virtual accounting services.
Recordkeeping and Bookkeeping education for small businesses.
Small business community on our website
Strategies to help you align your business profit goals with your accounting and bookkeeping needs
Search: Katrinamharrell and Your Simple Bookkeeperhttp://www.yoursimplebookkeeper.com
888.449.4145 toll free888.767.1966 fax
919.508.7608 [email protected]
Skype: katrina.yoursimplebookkeeperTungle.me: Katrinamharrell
PO Box 67Clayton, NC 27528
At the end of this presentation, participants will understand the basic concepts, tools and requirements needed to successfully start a business and make meaningful decisions.
Starting a business is exhilarating challenging, risky and fun. It’s impossible to know all there is to successfully start and manage a business with laws and requirements constantly changing.
Participants will learn what is important to know while your business is in start-up. ◦ Basics of effective recordkeeping
◦ CPA, Accountant, Bookkeeper what’s the difference?
◦ How to choose a great bookkeeper and CPA
◦ Things to consider when selecting the proper business entity
◦ IRS requirements
◦ How to avoid overspending
◦ Managing start-up cash flow
Entity Selection Various types of entities and a basic understanding of them The tax and IRS implications of various entity selections
IRS Requirements What do they require? How to ensure you avoid an audit
Recordkeeping Basics A brief overview of recordkeeping basics
Managing Start up cash flow What to consider in managing cash flow How to save money when starting your business
Selecting a bookkeeper/CPA What to look for When do you need one?
Does not need to be complex
Can be based on the size of your business
There is no IRS requirement for how records should be organized
Should be easy to follow
Can be computerized or manual or combination of both
Identify all your business records Purchase a small accordion file File folders Labels Hanging files Retention Schedule Sort and organize:
◦ Organizational documents (permits, licenses, articles, etc)◦ Tax documents◦ Vendor records◦ Inventory records◦ Customer records◦ Accounting Records◦ Bank Records◦ Contractual Agreements◦ Forms Used in Business
Keep these in a separate permanent file for easy access.
Should include:◦ Articles of Incorporation◦ Bylaws◦ SS-4 Tax ID Registration◦ Register of Deeds ◦ Shareholder Minutes and Consents, Board Minutes and
Consents, ◦ Action of Incorporator, and amendments to the various
corporate documents. If your business is not a corporation, then the other documents
that may be relevant here are partnership agreements, LLC documents, consents of the owners and similar records.
Tracking expenses properly
Tracking sales
Inventory control
Employee records and payroll
Time wasting searching for records instead of making money
Compliance with regulatory departments
What’s the point?
What is the Difference?
Bookkeeper – “The Number Cruncher”
•Records data•Processes data according to IRS guidelines•Processes payroll•Ensures data is captured and process accurately and precisely•Reports accurate and timely financial data to owner•Assist in managing internal control in business•Tax preparation
What is the Difference?
Accountant – “The Interpreter”•Analyze the results•Interprets financial reports to management (what do the numbers MEAN?)•Can perform bookkeeper functions•Create internal control processes to safe-guard business assets•Perform internal audits of business•Focus – “How do the numbers effect the overall business?”•Help ensure deductions are maximized•Strategic planning and budgeting•Minimum Bachelors Degree in accounting•Extensive corporate (private) accounting experience
What is the Difference?
CPA – “The Equalizer”•Same as Bookkeeper and Accountant•Create internal control processes to safe-guard business assets•Perform external audits of business•Focus – “How do the numbers effect the public?”•Help ensure deductions are maximized•Tax and Investment planning•Represent at IRS audits•Regulatory •Required to maintain training•State licensed – each state licenses CPA•Extensive Public Accounting experience
Experience Need of business Credentials References Track-record Knowledge about small business Visible Accountability (YOU and THEM) Personality PROACTIVE
Limited Liability Company◦ Easy to form
◦ Limited liability
◦ “Pass-Through”
◦ New form
◦ No tax benefit
Sole Proprietorship◦ Easy to form
◦ High liability
◦ SE tax on Net Income
◦ 1040
Corporation◦ Separate entity
◦ Cost more to form
◦ More available deductions
◦ Low liability
◦ Double Tax
S-Corp◦ LLC taxed as corp
◦ Complicated
◦ Not for all businesses
◦ IRS form deadline
◦ “Pass-through”
DON’T !
Create a budget
Stick to it
Bottom line – Does it make cents (sense)?
Be creative “Think LEAN”
Think Big, Act small
Business, not Personal
Internet
Cloud-computing
Saas (Software as a Service)
Network
Bookkeeping system from “DAY-0”™
Free options
“Cart before the horse” syndrome
LIVE Broadcast every Wednesday 2-4pm
Video archive on website
October 1st FREE Bookkeeping services
FREE Tax review services
Yoursimple Bookkeeper in-a-box coming Dec 2010
10-NON Marketing ways to Grow your business
Micro Business Support Services◦ $0-$150 per month◦ FREE accounting software
for start-up◦ Monthly review◦ Bill payment and
bookkeeping◦ Business entity consulting
Mailing list:◦ Updates◦ New promotions◦ Tax tips◦ FREE Business guides
To schedule your complimentary consultation go to: www.yoursimplebookkeeper.com and select the APPOINTMENT tab
Katrina M. Harrell919.508.6708