May 31, 2018
May 18, 2018
Small Business Help
Business EIN’s allow you to seperate your business bank accounts from your personal bank accounts. This makes it easier to track your business expenses easier. EIN gives you as the taxpayer more privacy; EIN prevents you from sharing your Social Security Number. To get a Business EIN from the IRS fill out Form SS-4 and mail it to the IRS.
Another way to get an EIN for your business is to go to the following website and apply for the EIN online: https://sa.www4.irs.gov/modiein/individual/index.jsp ----Applying for an EIN online is quicker but sometimes the IRS website is down and its difficult to prove your identity because you need to give some information.
To close a business you fill out a BC-100 for the state of Indiana and you file a FINAL tax return for the year you closed the business.
Opening and closing a business is pretty straightforward. Running the business and keeping it open is more difficult and time consuming. QuickBooks help me run my business. I print 2 financial statements every Quarter. The profit/loss statement and the balance sheet. The profit/loss statement tells me what I have earned and what I have spent. I do my budget on this statement. The balance sheet shows me how much I have paid myself in Owner Draws and what my bank balance is currently. Everyone should be financially aware in regards to actual numbers and the budget numbers.
QuickBooks Online
Try connecting your bank account to QBO(QuickBooks Online) before you begin posting checks or deposits manually. Connecting your bank account will save you time and hastle. To connect your bank account. From the “Dashboard” click “Connect Accounts” at the bottom right corner. From there follow the steps.
Posting Checks: Click “Expenses” then “New Transaction” drop down menu, Click “Checks.” You can create “Bill” before posting a check or click “Expense” to post a debit card transaction.
Posting Deposits: Click “Sales” then “New Transaction” drop down menu, Click “Sales Receipt.” If you know you will receive money at a later date and don’t want to forget to post it or want to post it early click “Delayed Charge” from the “New Transaction” drop down menu.
The goal when using QuickBooks is to post as much detail as possible if you want more information from the reports. Or post as little as possible and get it done faster and maybe you don’t need a vendor address list report or vendor phone number list report. Sometimes its best to keep it simple. Just post basic transactions so you can run the Profit/Loss Statement and the Balance Sheet. These are the only 2 reports you need to file your tax return. Other detail will allow you to get info such as Profit/Loss by Class. If you want to classify $5000 in rental income to 500 west property and $1000 rental income to 2234 drive property, you use by class to seperate the income and give you more detail.
QuickBooks Online Preferences
Preferences are the options you can change inside of QuickBooks. To access preferences click on the gear icon in the upper right hand corner of the screen.
The preferences I encourage everyone to review: 1. Accounting Method cash or accrual 2. Chart of Accounts- Enable Account Numbers 3. Track Classes.
To change these 3 items A. Click the gear icon B. Click “Account and Settings” C. Click “Preferences.”
“Manage Users” in the gear icon allows you to add an accountant user or an employee user. Inside “Manage Users” you (the Admin) may add “New” user and limit user access as well as print reports showing the date and time the user accessed your QBO account. Very helpful.
“Chart of Accounts” is probably the most important preference in the gear icon. After clicking on “Chart of Accounts” you may add or delete accounts you want or don’t need. I recommend deleting Miscellaneous Account. Every transaction seems to be posted into this account. To edit all the accounts quickly, click the pencil icon. To import your Chart of Accounts into QBO from Excel, Click “New” drop down menu, click “Import.”
To Import or Export Vendor or Customer details such as address and phone numbers click the gear icon, then click “Import” or “Export” under Tools heading.
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