There’s no business like show business, but there are several businesses like accounting.
– David Letterman
Creating the Company File
The first step when starting with QuickBooks, is creating a company file. QuickBooks does have a sample company that you can play with to get an appreciation of what you will be doing, but creating your own company allows you to focus quicker, especially if you have a stack of receipts lying next to you.
To see what is involved, watch this YouTube video QuickBooks Training – Creating a New File.
Learning Accounting Basics
A Jack of all trades, a Master of none
Being a small business owner means that you need to understand the basics in all parts of your business. You may be the expert where you service is concerned, but unless you minor in Accounting, you will need to learn.
The good news is that if you can balance a check book, you can learn that little bit extra to manage your business finances (until you can at least hire a full time book-keeper!)
Check out FULL CONTACT ACCOUNTING: The Best Way to Learn Quickbooks, Accounting and Bookkeeping for some accounting basics. At the end of the year, your tax accountant is going to “fix” everything for you. By year 2 you are going to be semi-literate!!
Yep – you do have a year-end, and yes you do have additional work to do. Month by month you have been comparing your actual vs. budget spending, correct? At year end, your accountant is going to ask for the following:
Check out the 5 documents your tax preparer needs to file your taxes. In addition, be prepared to file 1099’s for all vendors that provided your company a service that totaled $600 or greater – this is an IRS requirement so don’t missed. The deadline is end of January for the vendor to receive their 1099 AND you must have already received a W9 form from the vendor and have it in your files!!