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How to ledger a business checkbook

admin — Tue, 15 May 2012 21:55:48 +0000

Too often, small-business owners or those who are self-employed do not necessarily benefit from purchasing accounting software. Good record keeping is key to managing a business’s cash flow and for preparing financial statements and tax returns, so a minimal amount of accounting is required in order to properly run the business. Most small businesses can manage effectively by maintaining a ledger of the business checkbook.

Here are the 5 easy steps to managing your business checkbook:

Create a spreadsheet using a spreadsheet software program such as Microsoft Excel, or if your ledger will be handwritten, use graph paper or draw lines down a columnar pad to create separate columns.
 Enter “Date” in the first column for a header. Enter “Check Number” in the second column header. Enter “Description” in the third column for a header. Enter “Deposit” in the fourth column for a header. In the columns after “Deposit,” create a header based on the method you use to categorize business expenses. For example, Inventory, Office Supplies and Rent Expense. Enter “Balance” for the last column on the spreadsheet. Place a line under the column headers to separate them from the detail.
 Record today’s date on the first line under the column header, then enter “Balance Forward” in the Description column and the total in your checking account in the last column. This will give you a starting balance for your ledger.
 Record payment of expenses and deposits in the lines following the balance forward. Enter the amount of the expense under the appropriate categorization in the header. Each time you enter a new expense or deposit, add or subtract that amount from the Balance Forward amount in the previous line and record the new amount on the current entry line.  
Total the columns at the end of the month to get the total income and expenses by category for the month. Use the totals to create an income statement for the business for the month and to help with the preparation of your tax return.

At Fuel Bookkeping our goal is to light a fire under your bottom line, we know that good record keeping is key in understanding the cash flow of your business. We’re hear to help with all of your bookkeeping, payroll, and tax needs.

If you have any questions related to your year end taxes and or expenses please feel free to give me a call. I hope this blog post was helpful and as always if I can help you with any accounting needs please feel free to call. 1-866-969-FUEL (3835)

Let us handle the paperwork

admin — Wed, 09 May 2012 19:42:22 +0000

For some, the economic downturn transformed them from competitive corporate employees into creative moms and pops. What many new business owners don’t realize is that there is a substantial amount of paperwork involved when a new business is born. If you’re one of the brave ones who faced the storm head on and built your own business from the ground up-Fuel bookkeeping can help.

What are some of the forms that you can look forward to when starting a business?

Tax documents

Payroll tax
Withholding tax
Income tax
Communication with tax authorities
Federal and State tax codes
Sales tax
Tax write-offs

Financial statements

Income statement
Balance sheet (assets, liabilities, equity)

Employee documents

I-9 Employee Eligibility Verification
W-2

As a budding new entrepreneur, what’s the best use of your time? Going through tax documents in case of an audit, or focusing on growing and nurturing your new business?

For small business owners, finding a good bookkeeper can be difficult because they feel as if they are too small for large accounting firms to deal with and too complicated for accounting software that can be purchased at an office store. Fuel Bookkeeping can be the solution to your accounting headaches. We are specialized in helping small to medium size businesses with their bookkeeping needs.

When shopping for a good accountant to help get your business started, be aware of not only the questions they answer, but also the questions they ask. At Fuel bookkeeping we want to know what your business goals are and how we can help you get there. Our goal at Fuel Bookkeeping is to light a fire under your bottom line, this means that we focus on building and expanding your business. We are committed to giving you the best bookkeeping services available while helping you reach your goals then exceed them and continually work with you to make new goals as your business progresses.

Outsource Bookkeeping Makes “Cents”

admin — Tue, 01 May 2012 20:01:53 +0000

At Fuel Bookkeeping we provide outsourced accounting functions that go beyond doing your bookkeeping–we help you manage your business.

Benefits of Outsourcing

We reduce employee costs
You spend more time focused on your business–not data entry
We provide accurate and professional financial statements for accountants
We provide expert guidance for creatng budgets and revenue goals
We act as the CFO you wish you had and can’t afford

Know Your Business–Keep Your Bookkeeping Records Up-To-Date and Accurate

Many small business owners only act on getting the financial records of the business in order at year end so that income tax returns can be completed. Accurate and timely income statements, balance sheet and cash flow reports keep business owners informed about revenue and expense trends. The reports anwer the questions Who-What-Where-When.

Who-The customer or job type that generates the most revenue; who owes the company money….

What-What products or services need to be repriced or eliminated because they are losing money….

Where-Where can the business reduce overhead or other costs….

When-When are vendor invoices due and do I have enough cash on hand to make payments….

These are just a few examples of vital information monthly financial reports provide business owners. If you don’t have the time or the expertise to enter the data, prepare the reports and make business “cents” of them–then consider outsourcing your business bookkeeping responsibilities to Fuel bookkeeping.

We Eliminate Year End “My Books Are A Mess” Stress

Tax time seems to sneak up on all of us, and before you know it you have only a few weeks to file and sort boxes of receipts. Your income tax preparer will charge much more to do your taxes if they have to sort through piles of information.

More often than not, we can have your bookkeeping organized and entered in half the time it would take you (or your spouse!) to do it. Outsource your bookkeeping and you can relax at tax time, then spend your time where it will have the most impact- on building your business.

5 habits that are making you broke

admin — Tue, 24 Apr 2012 21:41:14 +0000

It’s not payday until Friday… It’s Tuesday and your funds have disappeared. Do you ever wonder where your money goes? Do you track it or does it have a mind of its own? Everyone has his or her trouble areas and or blind spots regarding money. Here are the top five habits that can reduce your money quicker then you like, and advice on what to do about it.

1. Carrying a lot of cash – Having a wallet full of cash makes you feel as though you have extra money, it’s likely you don’t, though. Make it a habit of only carrying enough cash for what you need for an outing. Leave the rest at home, or in your checking account. It’s great to avoid using plastic for your purchases as that makes your money seem to disappear. If you prefer to deal in cash, though, try budgeting yourself using the “envelope” method – each time you get paid, portion your funds into envelopes to meet various expenses – rent, entertainment, groceries, etc.

2. Saving your online payment information with vendors – It certainly makes the shopping experience easier, but beware, it also makes you more prone to impulse shopping because you aren’t taking the time to physically pull out your credit card and fill in the information.

3. Window shopping – Some days it’s just fun to browse the aisles at your favorite stores – whether virtual or actual. Virtual and catalog shopping is tempting but it leads to poor financial habits that take true effort to break. Also, you need to know yourself and your shopping habits. Do you shop after a bad day at work? When you’re bored? Angry? Keep your emotions – and your checkbook – in check by being aware of your particular shopping habits.

4. Put the scissors away – Don’t clip unneeded coupons. Do you really need to try out that new, trendy spaghetti sauce or those new plastic storage containers? If you don’t then don’t give into the lure of a coupon. Keep in mind, too that many generic products perform, and taste, just as well as the name brands and generics don’t typically come with coupons. Weigh the benefits before you whip out the coupons.

5. Impulse purchases – You’ve had a long day at work, the kids need to get to soccer practice and to top it off, you haven’t planned anything for dinner. What to do? Go for takeout? It’s estimated that the average family of four spends close to $4,000 a year on take out food! That is a habit that can make you broke in a hurry. The way to break the take-out habit? Plan a weekly menu. Plan quick and easy meals for the days when the family schedule is jam packed. Also, remember to plan for brown bag lunches.

The bottom line is that it takes time and effort to break your bad financial habits. Physically tracking your spending by writing down every purchase you make with cash and credit, for a two week period, will let you see the holes in your spending and plug them up with better budgeting practices.

When are Taxes Due? Today! April 17th 2012

admin — Tue, 17 Apr 2012 20:21:06 +0000

Wait I thought tax day was April 15th… Well if you are someone who waits for the last minute to file your taxes, you’ll be happy to know the tax deadline has been extended.

For the year of 2012 the IRS announced that the tax deadline for filling your 2011 personal taxes has been extended until today, Tuesday April 17th, 2012.

It’s not the first time we’ve seen the tax deadline extended. Last year we also had a few extra days to file.

When are taxes due normally?

In most years, your taxes are due on April 15 and extensions can be made until October 15^th. But when April 15^th falls on a holiday or on a weekend, the tax deadline is pushed back.

Since April 15^th 2012 is a Sunday, the tax deadline was pushed back. However this year there is an extra bonus because Monday April 16^th happens to be a holiday observed by the Washington D.C.: Emancipation Day. Therefore the tax deadline has been pushed back to Tuesday April 17^th, 2012.

What is Emancipation Day?

Emancipation Day is a celebration of the day in 1862 when President Abraham Lincoln signed the Compensation Emancipation Act. This act freed about 3,100 slaves in the District of Columbia nine months before all the slaves were freed with the signing of the Emancipation Proclamation. While it’s not a federal holiday, it is observed by Washington D.C. – it was declared a public holiday in 2005. We at Fuel bookkeeping think it should be observed as a federal holiday, in the meantime we are thankful for the extra two days to file personal taxes.

Be careful and choose your tax preparer wisely. If you would like a free consultation please contact us here at Fuel Bookkeeping.

If you have any questions related to bookkeeping, payroll and or payroll tax, or simply anything tax related, please feel free to give me a call. I hope this blog post was helpful and as always if I can help you with any accounting needs please feel free to call. 1-866-969-FUEL (3835)

Avoid these 3 rip-offs

admin — Tue, 10 Apr 2012 21:52:05 +0000

Some tax preparers tack unexpected fees on your bill. Others might offer extra services that aren’t worth the cost. Be on the lookout for these rip-offs:

1: Phony extra fees. Fees for “processing,” “document preparation,” and “service bureau” often are used to pad the preparer’s bottom line. Ask for a fee list before you hire a preparer and avoid those who refuse to give you one.

2: Refund-anticipation loans. Often hyped as “instant refunds,” RALs are basically short-term loans, at annual interest rates that can reach triple digits.

3: Refund-connected debit cards. Your tax preparer might offer to load your refund onto a debit card. But the cards can be loaded with fees. H&R Block’s Emerald Prepaid Debit Master Card, for instance, charges $2.50 for an ATM cash withdrawal and $1 for an ATM balance inquiry. The over-the-counter withdrawal fee is $25 per transaction.

Be careful and choose your tax preparer wisely. If you would like a free consultation please contact us here at Fuel Bookkeeping.

4 Business Functions to Consider Outsourcing

admin — Fri, 06 Apr 2012 05:04:42 +0000

As a small business, we understand the variety of decisions that need to be made by business owners. You, as the business owner may be responsible for functions such as marketing, hiring, payroll, accounting and recruiting. These activities can be overwhelming and also take focus away from the mission of the business. At Fuel Bookkeeping we recommend consideration outsourcing these 4 tasks in order to make you more effective at the core tasks.

1. Small business accounting includes a variety of tasks. Tasks include reconciling bank accounts, generating balance sheets and income statements, cleaning up general ledger. Reports can be provided monthly or quarterly depending on the needs of your business. Not sure how to track business income and expenses? We offer Quickbooks services as well as unlimited consultations so you understand the financial information we are providing.

2. Tax services are provided to businesses and individuals. Why spend time on tax preparation when you can have a trusted tax professional prepare them for you at a reasonable cost? We would be happy to sit with you for an initial consultation to determine if outsourcing tax preparation is right for your business. Tax reference tools and information are available on our website for your reference.

3. Payroll services are another service we recommend small business owners outsource. There are complicated laws and tax codes to research and understand before processing payroll and paying payroll taxes. Reduce the need of your business to have a specialized employee on staff to process payroll.

4. Marketing & Social Media Marketing can also be outsourced to professional consultants. Working with consultants you can create a company brand and space for your business in the marketplace without having a full-time marketing person on staff. The cost vs. benefits can be incredible when you find the right consultant.

When deciding to outsource functions it is important to not only include the cost of salary but also benefits. It could be to your financial advantage to outsource. If you have any questions related to bookkeeping, payroll and or payroll tax, or simply anything tax related, please feel free to give me a call. I hope this blog post was helpful and as always if I can help you with any accounting needs please feel free to call. 1-866-969-FUEL (3835)

IRS Issues 2012 vehicle depreciation limits

admin — Tue, 27 Mar 2012 19:25:42 +0000

A great chart to look at… I know it may be a little boring unless you are like me and love tax issues. The IRS has updated the “luxury car” limits for vehicle depreciation for 2012 (Rev. Proc. 2012-23). There are two sets of limits: one for cars using bonus depreciation (only new cars qualify for that) and another for non-bonus depreciation. If you would like to look over the tables take a look:

Cars.com says that a Kia “Soul” base model is listed at $15,994, making it the cheapest “luxury” vehicle available.

You did not think you could drive a Kia and be in a luxury car did you? Go have some fun in your new car!

5 things you need to know prior to a name change

admin — Tue, 20 Mar 2012 21:13:57 +0000

1. You aren’t married unless the Government thinks you are.

Your happy, in love and starry eyed. The IRS’ computers won’t know, or care, unless you let the Social Security Administration know. The IRS’ computer will look at your Social Security number and the name on your joint return and scream “Reject!”– Even if you kept your old name and hyphenated it with that of your new spouse. Long and short of this story… Let the Social Security Administration know.

2. Back to the Future

Divorced? Here again the SS will need to be informed. If you went back to your old name, don’t forget to let SSA know so that the IRS computers don’t have a nervous breakdown.

3. Who you say you are

When you’re ready to notify Social Security, you will need to provide them with proof that you are (now) who you say you are. Make sure you have a recently issued document that identifies you.

4. Paperwork, Paperwork, Paperwork

Provide the Social Security Administration with that recently issued document, as well as a completed Form SS-5, Application for a Social Security Card, either by mail or in person at your local SSA office. The form is available online at http://www.socialsecurity.gov/, by phone–call 800-772-1213 to request it—or at those handy local offices. Your new card will arrive with your old number and your new name.

5. Don’t forget about the Kids?

Suppose you (or your spouse) adopted the kids, and their names changed too. Social Security needs to know about them as well, even if they don’t have SSNs yet. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number–or ATIN–by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).

Five Mistakes Entrepreneurs Make

admin — Tue, 13 Mar 2012 20:22:04 +0000

Here are five mistakes we’ve seen entrepreneurs make when they’re starting their companies:

1. Thinking too small: Even if you have a niche market, your company could eventually hit a brick wall “if” the target that you’re marketing to is not wide enough. The way to address this issue, is by choosing a larger market and seeing if you can expand your offering. Adjust your marketing plan for a larger segment of the market. In the beginning, this can offer you a bigger pool of potential clients from which to choose.

2. Not enough sales: You can’t build a company without having a product to offer, but if you spend all of your time developing the product and not enough time on sales, you will lose potential customers. All entrepreneurs, regardless of whether they offer goods or services, need to concentrate on marketing and selling as well as developing products.

3. No map – No destination: Your company may not need a formal business plan unless it requires capital to grow. That being said, it is a great idea to take the time before you open your doors to map out items such as: who your clients are, what services will you offer, at what price will you offer them, by what metrics will you measure your success. A business plan will guide you toward your success. If you opt for a formal business plan, don’t over think it. Some entrepreneurs spend so much time thinking of the business plan that they become frozen in place and never open the doors.

4. Flying solo: Even if you are a sole proprietor, you still need a support team behind you. Your expertise comes in the form of what goods and services you’re offering. Lean on a support team for the aspects of running your business that are not your expertise, such as accounting or marketing.

5. In over your head: We all have aspects of our life where we excel and parts we struggle. I look to the professionals when it comes to law, marketing, and banking. I could do my own law work, but then I may do it wrong and end up in trouble. As well, I could do my own marketing, but it would take me too long and I may do it wrong. Trust in yourself, but also trust in your power team.

My advice is to gain as much knowledge as you can, but in the end trust in your instinct and follow your passion.