TruPoint Accounting & Tax Today

So you’re ready to launch your online store, congratualations! It wasn’t easy, but your hard work and determination got you to where are you are today. And though you may have a clear understanding on what your business sells, you’ll need to stay on top of certain tasks in accounting to keep your store on track and meeting its milestones. Here a few quick accounting steps you need to do now.

1. Open a bank account

Shop around for the best deal on a business checking account. You’ll want to stash your business income in a separate account to not only keep track of your business income but to also make life easier come tax time. If you are an LLC, in a partnership or corporation, you are required by law to maintain a separate business account. Different business accounts have various fee structures so pay close attention to stay within your budget. You might also want to look into business credit card to establish business credit. You must first establish your business by acquiring a name, licensing and registration within your state of business.

2. Track expenses

Build a solid business foundation by learning and tracking your expenses. This will help you monitor growth as you expand. Early on, establish a system which organizes your receipts and other important records. We recommend a small separate filing cabinet or portfolio labeled by month as an easy way to stay organized. Pay extra attention to Meal & Entertainment expenses, Business travel expenses, business vehicle expenses, charitable gifts and home office expenses as you are allowed to deduct them come tax time.

3. Implement a bookkeeping system

The point of accounting is to monitor and track a businesses progress and to make sense out of all the data compiled through bookkeeping to build a financial statements. You’ll need to determine which bookkeeping method to use and choose the best one that fits your business & budget. You can choose to DIY by using software like Quickbooks, or you can choose to go old school and use Excel spreadsheets. Outsourcing a bookkeeper or accountant is the most effective way to start and stay on track. We recommend finding a local bookkeeper that can work on site or virtual.

4. Set up payroll

Many start ups are run and operated by the business owner, however, if you plan to hire employees, you need to determine if the individual is an employee or independent contractor. For employees, you’ll need to set up the payroll schedule and ensure that you are withholding the correct amount in taxes. For independent contractors, keep track on how much you payout to each individual. Independent contractors may be required to file 1099s for each year end so keep and maintain proper contractor information.

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