Do not look through a phone book to find an accountant. There is a better way. After all, an accountant can become a trusted adviser, the gateway not only to your accounting systems and tax returns, but a trusted source who can introduce you to other advisers.

I have developed criteria that will help you narrow down your list of potential accountants and find the one that is right for you!

After all, the future of your business may depend on it.

Criteria for Finding an Accountant

Size of firm

Large firms, particularly those that cater to large multinational companies can be cold and treat your account like it’s small potatoes. They are also likely to charge highly for their services.

Conversely, smaller accounting firms that are run solely by one individual tend to be overburdened with returns, and also have trouble giving your situation the attention it deserves. With that in mind, the goal for most businesses should be to find a happy middle ground.

Make sure during the interview process that your accountant will have the time and inclination to work with you on a continuing basis, not just once a year at tax time.

Accountant’s Personality

The short list supplied to you should consist only of accountants familiar with the tax laws; it is equally important to retain an accountant with a personality and with whom you can relate.

Personality is an important factor for consideration, because good accountants talk with their clients about more than just numbers. They should talk about the client’s income and spending habits. They also proactively identify possible deductions, and are approachable and willing to answer questions for their clients.

During the interview determine whether the accountant is approachable and has the communications skills necessary to build and maintain a fruitful business relationship.

Your Accounting Needs

Remember that your accountant can help you with much more than just your small business tax advice. The questionnaire is set up to find out from you what kind of accounting needs you have.

You might be surprised at the diversity of needs your accountant can fulfill. Question your potential accountant to make sure your needs will be met. Important considerations may include:

• Do You Need to Be Incorporated?
• Do You Need Payroll Services?
• How Many Employees Do You Have?
• What Type of Entity is Your Business?
• How Long Have You Been in Business?
• Your Company’s Revenues Last Year?
• What Industry are You In?

What type of accounting services do you need?  Not all accountants will do each of these or do them all well.

• Small Business Accounting
• Audit/Review
• Bookkeeping
• Financial Statements
• Financial Planning
• IRS Representation
• Online Bookkeeping
• Small Business Tax Advice

Interview the Accountant Finalists

Once you receive your short list of accountants personally picked for you according to the criteria you have indicated, interview each of them.

Your objective is to find the best possible accountant for you.

Doing Your Own Bookkeeping

Funds may be stretched, especially when starting a business so you may need to do your own accounting work.  One site I recommend that also provides free spreadsheet templates is BasicAccountingHelp.com

The post Small Business Tax Advice appeared first on How To Start a Business Guide.

In addition to providing personal finance software, Intuit has been a supporter of small business for over 25 years. You probably know Intuit for its Quicken, QuickBooks and TurboTax products. Intuit also provides payroll services. I have used all three suites of products for over a decade. They are easy, accurate, and fast.

QuickBooks Basic Payroll

1. Easily pay employees in just 3 steps:
2. Create paychecks in just a few clicks
3. Basic Payroll automatically calculates payroll taxes

Generate reports then work with your accountant on taxes–no tax forms included

Easily pay employees yourself within QuickBooks and work with your accountant on tax filings.

Basic Payroll helps you:

1. Easily Pay Employees
   • Simply enter employees’ hours in QuickBooks and with just a few clicks, Basic Payroll automatically calculates earnings, payroll taxes and deductions for you.
   • Easily print paychecks yourself, or use convenient Direct Deposit (additional fees apply).
2. Instantly calculate payroll taxes
   • Basic Payroll instantly calculates federal and state payroll taxes for you. Simply write checks to make the tax payments yourself.
   • Intuit Payroll’s team of compliance professionals works with tax authorities to help keep your payroll tax rates accurate and up-to-date
3. Work with your accountant on tax filings
   • Basic Payroll does not include any tax forms. However, you can easily generate reports and work with your accountant on tax filings.
   • To learn more about QuickBooks Basic Payroll and determine whether this is the optimal payroll solution for you click on the box. You will land on a page dedicated to giving you full information about Quickbooks Basic Payroll including Features and FAQs.

QuickBooks Enhanced Payroll

Complete your entire payroll in just a few clicks. Easily manage payroll yourself within QuickBooks. Enhanced Payroll helps with your three key payroll jobs so you can get back to business:

1. Easily pay employees
   • Simply enter employees’ hours in QuickBooks and with just a few clicks, Enhanced Payroll automatically calculates earnings, payroll taxes and deductions for you.
   • Easily print paychecks yourself, or use convenient Direct Deposit (additional fees apply).
2. Instantly calculate payroll taxes
   • Enhanced Payroll instantly calculates federal and state payroll taxes for you. It helps keep track of what you owe and reminds you when and how much to pay. You can easily write a check or pay your federal and state payroll taxes electronically with E-Pay at no extra cost.
   • Intuit Payroll’s team of compliance professionals works with tax authorities to help keep your payroll tax rates accurate and up-to-date.
3. Confidently handle tax forms
   • Enhanced Payroll automatically fills in the latest federal and most state payroll tax forms for you – just print, sign, and mail. Or, conveniently file federal and state payroll tax forms electronically with E-File at no extra cost.
   • To learn more about QuickBooks Enhanced Payroll and determine whether this is the optimal payroll solution for you click on the box. You will land on a page dedicated to giving you full information about Quickbooks Enhanced Payroll including Features and FAQs.

Intuit Online Payroll

The best online payroll provider solution for small business owners who want ease and convenience. Easily pay employees and handle your own federal and state payroll taxes and filings online, anytime, anywhere.

Get started quickly

• Intuit Online Payroll helps with your three key payroll jobs:
• There is no software to install (QuickBooks not required
• Run payroll the same day you sign up
• Get started quickly with an easy step-by-step setup guide

• Easily pay employees
  • Create paychecks in just a few clicks: Intuit Online Payroll automatically calculates earnings, payroll taxes & deductions for you
  • Easily print paychecks yourself, or use free and convenient Direct Deposit
  • Access the latest federal and state payroll tax rates
  • Run customizable reports anytime to see how payroll affects your bottom line
• Instantly pay payroll taxes
  • Instantly calculate federal and state payroll taxes
  • Keep track of what taxes you owe and when payroll tax payments are due
  • Easily pay your federal and select state taxes electronically with E-Pay at no additional cost
• Confidently handle tax forms
  • Automatically fills in the latest federal and many state payroll tax forms for you – just print, sign, and mail
  •  Conveniently tracks when tax forms are due and reminds you to file them on time
  •  Receive helpful emails reminding you about payroll tax payment and form deadlines
  • Easily file Federal tax forms electronically with E-File at no additional cost

Intuit Online Payroll additionally offers the following features:

• Flexibility of anytime, anywhere access
  • Pay employees and handle payroll taxes anytime, anywhere you have an Internet connection
  • Payroll data can be accessed only through a protected username and password that you control
  • Effortlessly share data by granting protected access to multiple users
  • Easily export your payroll data to Quicken or QuickBooks financial software
• Get help when you need it
  •  Get free callback support from our payroll specialists
  • Receive 24/7 access to our online Answer Center
  • Other important benefits:Risk-Free Trial
  •  6-month FREE trial!
  • Trusted
  •  Intuit Payroll: The small business payroll leader with over 1 million customers

The post Payroll Provider Solutions appeared first on How To Start a Business Guide.

Option 1: Hire a bookkeeper.

Option 2: A good alternative to hiring your own bookkeeper is to hire a virtual bookkeeper. This will eliminate the hassles of having to make sure you keep the bookkeeper busy, paying payroll taxes, having a desk and software for the bookkeeper, and putting up with other expenses and hassles associated with having employees.

As a cost-effective alternative to hiring a bookkeeping employee you provide your virtual bookkeeper with the necessary information and documentation to input your income, expenditures, etc. Your bookkeeper produces all of your financial reports according to your specifications.

The documentation can be sent to your virtual bookkeeper via fax, email or mail. Your bookkeeper records your information and then e-mails your reports on a daily/weekly/monthly basis – according to your needs. If you ever need to consult with your virtual bookkeeper, you can do so via email or phone.

It is important to note that while a bookkeeper does not replace an accountant, the bookkeeper can assume the bookkeeping responsibilities that your accountant may currently provide for you at a more reasonable price.

The bookkeeper does not deal with the income tax aspect of your business but will work with your CPA to help define the financial information that will be needed to provide the best management of your business and will provide that information to your CPA when requested by you.

Option 3: If you have the time and the inclination, do it yourself. You may want to do this as I did years ago but I suggest your time is better spent growing your business.

Option 4: Have your accountant do the bookkeeping. There are still a few accountants around who do their own bookkeeping. I don’t recommend this, however, because they invariably charge more for the service that a bookkeeper can do. Even if the accountant hires a bookkeeper to do the work, the accountant is still responsible and will expect to make a profit on the service.
You now know your bookkeeping options. With these bookkeeping tips you don’t have to be befuddled when it comes to accounting and outsourced bookkeeping services. You have the facts and you are ready to make a decision.

The post Bookkeeping Tips appeared first on How To Start a Business Guide.

Quickbooks, the Most Popular Software – And My Choice

“Quickbooks” is the financial software package I have used for all my businesses for the last fifteen years or so. It allows you to create invoices and reports in a flash from more than 100 professionally designed invoices, estimates, statements, and other forms. It includes built-in tutorials, onscreen help, and free QuickBooks callback support for 30 days following registration. It tracks all your financial information in one place, including sales, expenses, and business loans. Choose your Quickbooks software and Quickbooks tutorial tools below:

Or Buy Direct

Intuit QuickBooksPro Edition
Choose the most popular version of America’s #1 small business financial software. It is so efficient, it will give you back your time so you can easily stay on top of your business.

• Organize your finances all in one place
• Immediately know where you’re making money or not
• Be ready at tax time with full & accurate reports
• Instantly create invoices and manage expenses

Intuit QuickBooksPremier Edition

Tailored for your Industry
Choose the version of America’s #1 small business management software that is designed for your industry needs:

• Immediately know where you’re making money or not
• Gain insight — over 150 industry-specific reports
• Easily create business plans, forecasts, expense reports to stay on top of your cash flow

When you buy QuickBooks Premier and install your software, you may choose from one of the following industry versions to install, or stay with the General Business Edition–Contractor, Manufacturing or Wholesale, Nonprofit, Retail, Professional Services. Note that you can also mix and match certain features within the financial planning software such as inventory, job costing, order tracking, invoicing and reporting — to name a few.

The Premier Version does everything the Pro Version does but in addition it also allows you to:

• create a business plan quickly by answering step-by-step questions; you can export the projections to Excel for further analysis or save it as a PDF file
• forecast sales & expenses for the coming year, based on your existing QuickBooks data
• create industry-specific reports and install industry features.

Or Substitute Less Expensive

Simply Accounting 8.0 is not as user-friendly but includes many of the same features as QuickBooks Pro at a lower price.

Peachtree By Sage Complete Accounting 2009 is an entry-level product that provides the basics of accounting at a low price.

The Accounting Game, 2E: Basic Accounting Fresh from the Lemonade Stand. This is a very inexpensive book that gives you a good overview of how to set up your accounting system. If you have never had a basic class on bookkeeping or accounting you may want to invest a few dollars and read this book.

Or Outsource the Work

Is this you? Maybe you really shouldn’t do your own bookkeeping.

Beneficial Bookkeeping Services provides comprehensive virtual QuickBooks bookkeeping and payroll services to small businesses and individuals. They provide this service via the internet, email, phone and fax.

If you are a small business owner who wishes you had more time to run your business, or would like a money saving alternative to in house bookkeeping, Beneficial Bookkeeping Services is just the solution for you!

For outsourcing your bookkeeping and payroll needs, check out Beneficial Bookkeeping.

Or Use a Guide

Whether your goal is to get your business finances in order, streamline your system for efficient money management, or reduce your taxes, this website acts as a tutorial which teaches you how to setup your record keeping system – just the essentials for you to manage your business efficiently.
Just think of this site as the Small Business Accounting Guide for you and your bookkeeper.

Discover…The Essentials of Bookkeeping Because Knowledge is Money.

Whichever solution you choose this accounting software comparison will lead you to the right solution for you.

The post Accounting Software Comparison appeared first on How To Start a Business Guide.

Accounting 101 for Your New Business

Accounting is how we keep score in business; accounting is the language of business. Today, we keep score almost exclusively on the computer. There are a variety of powerful yet simple accounting software programs that help you to know how you are doing.

Before introducing those, it’s very important to have at least a rudimentary knowledge of accounting. That’s what we call “Accounting 101”.
It’s important to realize why accounting is important. Accounting communicates information about a company’s business; it allows business owners and managers to make informed decisions; accounting also measures economic events.

But no matter how much accounting you know, you are almost certainly going to need an accountant to help you with your tax return at tax prep time if nothing else.
Find out what criteria to use to find the best accountant for you.

The next section shows how business keeps score.

Basic Accounting Principles

Basic accounting principles start with the most basic accounting reports. The three most basic reports we use in keeping score are:

The balance sheet tells you how much you own and how much you owe. The difference between the two is your equity in the business. The balance sheet has three sections as follows:

• Assets, including cash, accounts receivable, inventory and fixed assets such as property and equipment,
• Liabilities, which is what you owe, including what you expect to pay this year and what you have to pay more than a year out,
• Owner’s equity, which is how much was put in by the owners plus or minus cumulative profits.

The profit and loss statement tells you how much your profit (or loss) was over a certain amount of time (a year, a quarter, a month) The profit and loss statement, also called the income statement is calculated as follows:

• Sales – Cost of Sales = Gross Profit
• Gross Profit – Expenses = Net Profits

The cash flow statement tells you whether you have more cash than you had at the beginning of the period, and what the sources and outflows were. This is a good predictor of your cash position in the future.

• Start with your beginning cash balance, add any cash taken in, and then subtract any cash going out.
• The difference between what you take in and what goes out is the “cash flow”.  If you take your cash flow and add it to your beginning cash balance you will have an ending cash balance. This cash balance then becomes the beginning cash balance for the next period.
• Cash comes in, in the form of cash sales, accounts receivable collections, new loans and new investments.
• Cash going out typically goes to expenses paid, equipment purchased, accounts payable paid, inventory purchased and paid for, and loans paid.

Of the three statements above, the cash flow statement is the most frequently overlooked. Do so at your peril, though. No matter how profitable your business is, you will soon be out of business if you run out of cash. Remember that cash is king.

Simple Accounting Software

Quickbooks, the Most Popular Software “Quickbooks” is the financial software package I have used for all my businesses for the last fifteen years or so. It allows you to create invoices and reports in a flash from more than 100 professionally designed invoices, estimates, statements, and other forms. It includes built-in tutorials, onscreen help, and free QuickBooks callback support for 30 days following registration. It tracks all your financial information in one place, including sales, expenses, and business loans. Choose your Quickbooks software and Quickbooks tutorial tools below:

Peachtree By Sage Complete Accounting 2009 is an entry-level product that provides the basics of accounting at a low price.

The Accounting Game, 2E: Basic Accounting Fresh from the Lemonade Stand. This is a very inexpensive book that gives you a good overview of how to set up your accounting system. If you have never had a basic class on bookkeeping or accounting you may want to invest a few dollars and read this book.

Get a full Accounting Software Comparison and a list of options.

Bookkeeping Options

If you are like the lady at the right, you need help with your bookkeeping. You have various bookkeeping options, including hiring a bookkeeper and retaining a small business bookkeeping service. Get your bookkeeping tips and find your bookkeeping options here.

It’s important to know at least some basic accounting–what we call Accounting 101. You now know…

• Some basic accounting terms.
• How accounting keeps score in business.
• The important basic accounting principles.
• What criteria to use in choosing an accountant.
• How to choose your simple accounting software.
• How to choose your small business bookkeeping service.

Other Resources

BasicAccountingHelp.com – Lessons on small business accounting and free spreadsheets

The post Accounting 101: Simple Accounting Software and Basic Accounting Principles For Your New Business appeared first on How To Start a Business Guide.