042: Bookkeeping & Taxes, Amy Northard
Get set up for success
Bookkeeping & Taxes. Ugh. The bane of most small business owners existence. We've got Amy Northard here today to help us understand the most important things we need to be aware of (especially at the beginning of our businesses) and how we can set ourselves up for success when it comes to tax time. This is a must listen episode for all small business owners!!
First things first
Get a business bank account!!! Separating your business money from your personal money will drastically help set you set up yourself for success
NerdWallet.com <----use to compare banks
Should everyone outsource?
Depends on the stage or level of business you are at. If you can't afford it from the beginning, use something that is simple and makes sense to you.
Spend 1-2 hours per month (on average) per month to reconcile all of your accounts
- Set up a bank account
- Set up a "money date" for yourself every month to take care of your tasks
- Get someone else to help keep you accountable
- When you don't have enough money to pay your taxes. Make sure to set aside 25-30% every single time you get paid so it is not something you spend.
- Planning for retirement
- You can't payroll yourself until you are an S-Corp. Read Profit First
- You can't expense your taxes as a business expense
How to make your tax life easier
- Keep up with your bookkeeping
- Have a digital folder where you can keep receipts and a paper folder as well
Specific apps or software to use?
- Quickbooks (self-employed) or (full version)
- Cloud Accounting or Wave are good online softwares as well
- Google Sheets has a template as well if you want to start out with that
Is it ever too late to get started?
NO!! Don't be afraid to ask for help and/or understand you might need to spend a weekend getting everything together.