Business Start Up FAQ

 

Are you interested in starting your own business?  Accounting By The Books offers new business start up services that include; guidance & consultation, bank account setups, new business tax requirements, employee guidance, and training.  Lori, the owner of Accounting By The Books, has a passion for helping and mentoring new business owners.

 

If you are considering starting your own business, then I am sure you probably have a million different questions. We thought it might be helpful if we put together a list of frequently asked questions for you to read through as you begin your journey.

 

 

1.  Do I need a Tax ID?

No, not unless you have employees, however it is recommended you do because you will be giving out your tax number for business purposes and you don’t want to give out your SS# to just anyone.

 

2. Why keep a mileage log? Can’t I just keep track of expenses?

By law, the IRS requires you to keep track of mileage for proof.

 

3. Should I have separate bank account?

YES! This is very important.  You are required to keep track of your business expenses separate from your personal expenses.

 

4. How do I pay myself If I’m an LLC?

A Draw.  You cannot be in payroll unless you are Taxed as an S Corp.

 

5. What version of QuickBooks should I use?

This will depend on the industry and the various needs.  QuickBooks Online is recommended for most clients.

 

6. Can I do my own payroll if I have QuickBooks?

It is not recommended. There are certain deadline timeframes that must be kept or there are big penalties and fines.  It is better to outsource your payroll to the experts and save your time for making money for your business.

 

7. What is the difference between an Employee and Subcontractor?

If you tell them where to go, how long to stay and what to do while there, they are an employee.  If they work casually for you while also working for others they are a subcontractor.

 

8. What is the difference between a Sole Proprietor and LLC?

LLC = Limited Liability Corporation.  It does just what it says.  Limits the Liability as a Sole Prop your personal belongings could be taken away if there was ever an issue with your business.

 

9. What is the difference between a CPA vs. Bookkeeper?

A Bookkeeper helps you keep track of your day to day numbers.  A CPA helps you manage those numbers, provides advice and completes your tax return. What makes ABTB unique is that we’re an Accounting Firm offering a combination of both Bookkeeping and Accounting Services. We do not, however, prepare Tax Returns.

 

10. What are some of the Financial Reports for Business Owners to review?

Balance Sheet = The Assets, Liabilities and Equity in your business.

Profit & Loss Statement = The income and the breakdown of expenses showing your net income for your business.

 

 

If you have any additional questions or are interested in any of our new business start up services, please don’t hesitate to contact us. We would love to help you in any way that we can as you get your new business started.  

 

 

Tiffany Goodin,

AccountingByTheBooksNC.com