Record Keeping, Taxes, IRS, Anxiety!!

[NoLackey]

My first attempt at a "real" business turned out to be a huge pain in the a$$. I was using a spreadsheet to keep my records, which worked fine for my needs, but once taxes came around I was hit with a huge rush of anxiety. It was an online retail store and my accountant wasn't very clear what she needed from me to file taxes. I wasn't completely sure myself as it was my first LLC. I had ebay invoices, paypal statements, bank statements, my own record keeping spreadsheet... I got extremely anxious every quarter making sure (and worrying) that everything was filed correctly with the IRS.

If I get a software like QuickBooks where I enter every transaction related to my business, would I be able to run certain reports every quarter with all the information needed for my accountant to file?

How do you handle your record keeping and making sure your quarterly taxes are filed? Do you use software and what reports do you send to your accountant? Do you file yourself?

Other ideas?

I'm really trying to find a more streamline solution than spreadsheets so that I can focus more on the business; and spend less time worrying .

 

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[BlakeIC]

I started using go daddy booker ping

Although being somewhat of a pain it does work well for me as it already auto imports sales info from eBay PayPal chase etc (etsy too)

BTW you can also write off business mIles too

I use mileiq for it instead of godaddys mileage tracker as it way less time consuming to use

 

[Vigilante]

Get a new accountant

 

[GSF]

How about finding an accountant who specialises in ecommerce, these guys look pretty good http://www.catchingclouds.net

I've never used them, just remember seeing them featured somewhere before and thinking it looked like a cool service

 

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[Damage Inc.]

I'm a sole proprietor and do all of my accounting and record keeping in Excel. If your accountant can't give you a simple list of what he needs maybe you should switch to someone who specializes in small businesses and can give you more personalized attention until you get the hang of it. All I bring is my paypal end of year paperwork and my excel spreadsheets and he asks me for the numbers he needs as he's filling everything out. For me it isn't much more complicated than knowing my revenue, expenses, and write offs. He fills out the 1099s that I give my clients as well, I basically just feed him the numbers he asks for. I don't do anything with bank statements, credit card statements, or ebay invoices; I just make sure it all exists in case I get audited. As far as I know a single member LLC is pretty similar to a sole proprietorship when filing taxes so it shouldn't be super complicated for you either.

Edit: It also helps to stay organized throughout the year and close out each month individually with all of the important numbers that you know you'll need for taxes. Then when the quarter or the year is up it's just a matter of adding 3 months or 12 months worth of numbers together.

 

[million$$$smile]

Get a new accountant

Absolutely, get a new accountant.

And look into something like quickbooks online. I have used it for years and love it. Order some checks that can be printed via the program and all you have to do is sign the checks and stuff the envelope. No more posting the check to the bill...

As you grow your business, think of PROCESSES that will save you TIME, processes that are needed but redundant to creating MONEY. As important as growing your business (creating money), your time is certainly as important. Unless you enjoy shuffling papers (time suck) get a software program that shortens that process.

A monthly subscription for a software program that keeps your books straight is worth it's cost. I fought this myself for several years but after spending hours compiling all the receipts to give to a bookkeeper/accountant, it was just not worth it.

Figure it in the cost of just doing business.

It will keep you from pulling your hair out and you will learn a process that will help you in all aspects of your endeavors.

Good luck!

 

[DrkSide]

An online accounting program is absolutely necessary for a business if you are doing any volume of transactions.

The benefit is two fold in both you free up your time since the accounting program automatically pulls in transactions from your bank account and most of them allow you to give your accountant access. That way they can look at the data and pull what they need. It really makes the process easy.

I just put a percentage of profits in a savings account to pay taxes.

 

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[million$$$smile]

I use mileiq for it instead of godaddys mileage tracker as it way less time consuming to use

Thanks! Looking forward to trying this app.

Rep++

 

[Ramble On]

Hire an accounting firm to handle it and focus more on growing your business. I use a local accounting firm that handles everything. Every month I just give them the sales reports, bank statements, receipts, etc. They do all of the bookkeeping and handle the tax returns. Each quarter they provide me an updated P&L. At the end of the year they prepare and file my personal and business returns.

For what their services cost it is well worth the money to spend my time focusing on growing the business instead of doing accounting work.

 

[BlakeIC]

Thanks! Looking forward to trying this app.

Rep++

1 tip, make sure you have app running in the background, if you dont, then it wo0nt automatically start tracking your distances when you get in your car

 

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[BlakeIC]

Hire an accounting firm to handle it and focus more on growing your business. I use a local accounting firm that handles everything. Every month I just give them the sales reports, bank statements, receipts, etc. They do all of the bookkeeping and handle the tax returns. Each quarter they provide me an updated P&L. At the end of the year they prepare and file my personal and business returns.

For what their services cost it is well worth the money to spend my time focusing on growing the business instead of doing accounting work.

are they charging you per transactions, sales? or is it always "x" per month/year

 

[IGP]

IMO, there are several things that EVERY business should outsource. Accounting is one of them. Unless you're a CPA of course.

I use quick books and I file every quarter based on "last" years return. If by years end my income is significantly higher than the previous year, I increase my Q4 payment.

I don't worry about taxes at all!

 

[Ramble On]

are they charging you per transactions, sales? or is it always "x" per month/year

They charge me a set amount a month for the bookkeeping and then a separate fee for preparing / filing my tax returns. I make my quarterly tax payments and they handle everything else. I am sure that as my business grows and develops they will increase the monthly charge for bookkeeping.

 

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