Recently we had a meeting with Raleigh area accountant Lori Aveni of My Shoebox Bookkeeper. The discussion was packed with valuable information and I wanted you to get all my notes!
1. Spreadsheets are good, but not enough. If your business is so small that it only has 5-6 transactions a year, spreadsheets are fine. If you are bigger or growing your business, accounting software is a must!
2. Get a separate credit card for business. Even if it is a personal card that you only use for business.
3. Credit card statements help with record keeping, but hang on to your receipts for actual documentation for expenses. (Digital receipts are acceptable.)
4. Backup your files! The IRS doesn’t care if your computer crashed. Backups suggestions- Cardonite, Dropbox or Evernote.
5. Paying yourself isn’t as complicated as it seems. Simply write yourself a check and record the payment!
6. Always file your taxes, even if you can’t pay! Complete the forms and send them in without payment if you must. Penalties for not filing are far worse than late payments.
7. File your Sales and Use tax even if your totals are zero.
8. Claim sales tax per the date of payment, not the date of service.
9. Give gifts! But you can only expense $25 per person per year.
10. There is gray area between contractor and employee! Consider these things: Do you provide the equipment? Do they set their own schedule? How much supervision do you give? Did you have to provide training? Do they do that same service for others?
Small business bookkeeping is intimidating for many of us! Thank you Lori for giving Vend Raleigh details that help us feel empowered and knowledgable. Your advice really takes the stress out of it! (Lori is a Vend Raleigh Directory member, refer her to your friends!)