BlogBookkeeping tips to help you build a solid financial foundation for your business. |
As a small business owner you don't have extra money to throw around.
I get that. I love saving money whenever I can. Which is why I want to let you in behind the scenes of my bookkeeping business. The best time of year to start your new bookkeeping system is January 1. This keeps all your records for the year in one place and ensures tax time will be a breeze. And the best time to hire a bookkeeper? February. Seriously? YES! If you hire a bookkeeper in February it will be the least expensive because I don't need to clean up any previous months and your January bookkeeping is completed in February! That means there's no time for things to get confusing for you. Just hand it over to me and continue on with your life! Ready to save money? Schedule a discovery call and we can get started! What is a 1099?
A Form 1099-MISC is used to report income paid to independent contractors. It tells the IRS how much you paid to a contractor for services during the year. When are 1099s due? January 31st. This means they must be filed with the IRS and delivered (at least postmarked) to the recipients by that date. Who do I send 1099s to? Unincorporated vendors paid $600+ for services using cash, check, bank transfer, or debit card. You do not need to send one to those who are Corporations or S-Corporations. How do you know? Ask them for a W9. That will let you know their business’s status so you know whether or not they should receive one. What if I paid them using PayPal or credit cards? You don’t need to do anything! Those companies will send a 1099-K for you. If you use the Friends and Family option in PayPal you will need to issue a 1099-MISC. Note: using Friends and Family to pay independent contractors violates PayPal’s terms of service and can restful in your account being frozen or closed. What is the easiest way to file my 1099s? Hire a bookkeeper! I have a few openings for 1099 clients if you need help. What if I didn’t file a 1099 for someone that I should have? File as soon as possible. You may be required to pay a fee depending on how lat you file. So you're thinking of hiring a bookkeeper –– I think that's a great idea! Here are a few things you need to have in place before you hire:
The first thing you'll want to do is setup business bank, credit card, and/or PayPal accounts. It is not a good idea to run your business through your personal accounts. Not only does it make tax time a mess, but it will make your bookkeeping a nightmare!! So if you're looking to hire a bookkeeper in the near future be sure you have your business accounts setup first. The second thing I recommend doing before hiring a bookkeeper is to follow bookkeepers on Instagram. No, not just me (though I would be honored if I'm one of them––find me here)! Go follow two or three. You need to see who you connect with, the type of clients they specialize in, and who you love learning from. You'll get a good feel for what you're looking for and when you're ready to hire you'll have your favorite picked out! The last thing to do before hiring is prepare your budget! A good bookkeeper will cost the typical business $200-$300 per month. A word of wisdom: hire a bookkeeper that charges a flat fee. You don't need the stress of wondering how much your bookkeeper is going to charge each month. Also, don't base your choice only on cost. Cheapest isn't always the best. Look at the packages the various bookkeepers offer and choose the one that meets your needs. Any other questions about what to do before hiring a bookkeeper? |