It’s good that you are focusing on the basics right from the start.  Accounting and bookkeeping are not the most exciting parts of running your own business, but is essential in making your business a success. Here are a few things to avoid:   (1) Save ALL of your receipts.   Document, document, document; it will improve your disposition at tax time. (2) Hire a bookkeeper or an accountant. You are the owner; focus on the “big picture” of making your business a success.  Delegate the bookkeeping job to someone who is trained and competent.  (3) Don’t absorb the small expenses. They add up. Some small business owners are careless when it comes to submitting expenses for reimbursement. When you buy even a small, inexpensive item, give the receipt to your bookkeeper for reimbursement. (4) Classify your employees correctly.  Contractors and consultants sometimes make it hard to determine who is really on staff. This can cause confusion when filing your taxes.  (5) Reconcile your bank statements.  You’ll be glad you did.  Create a routine – and follow it.  (6) Have backups – always!  And not just on the computer.   A paper trail is essential for going through an audit.

 

Good luck as an entrepreneur!

 

I am setting up my busines and I have three employees.  This business is a recording studio that charges for time.  I the owner will be the only one that will have a steady work week.  The other employee will be "on call".  My question is do I set these guys up as a contractor and set myself up as an employee.  At the end of end day or work week I want to have checks mailed to me and taxes deducted and social security taken out for retiring.  Can someone direct me the right way please.  Mike 832 567 1152.  Thanks