Last year, the renewal notice never arrived in the mail. Instead, we just got a postcard from the Division of Corporations in early October that our business registration was now late for 2011. It wasn't that big of a deal; the renewal costs $15/year and the late fee was only $10, but it was irritating that they wouldn't give us any leeway when we didn't even receive the first notice.
One frequent problem I see in people's accounting records is how they record money they take out of the business as their "paycheck." I'd like to explain how to do this correctly.
This post is dedicated to @angiedelong and other professionals who dabble in Twitter but need some clarification.
I received the following news bulletin in my email today, and would like to share this important information with all our readers:
Today we participated in the event "Enlightened Entrepreneurs," sponsored by the Community Foundation of Utah. The purpose was to give local nonprofit organizations a chance to network and learn from entrepreneurs. I hadn't thought of myself as much of an expert, but I believe I was able to help a few people today. (You can read the twitter feed here and the official news bulletin here.)
The advice I gave tended to fall into two categories: bookkeeping practices and social networking. Here's a summary.
To recap, the challenge was to finally tackle the piles of unfinished business in our lives/homes/offices, particularly those related to bookkeeping.
Yesterday we went to one of a free workshop put on by Robert Kiyosaki's Rich Dad Education company. I enjoyed Rich Dad, Poor Dad; it makes a great point about how we are preconditioned to think in certain ways about money and financial success, so I was hoping to learn something new and liberating. I was sadly disappointed.
Choosing a bookkeeper is just like hiring any other professional to help you in your business, whether an employee, subcontractor, or lawyer. You have tasks that you need to delegate, so you look for someone who is both suited to the task and who fits well in your business. Here are some specific recommendations for choosing a Really Good Bookkeeper.
I had a fun conversation with my sister on Skype this morning:
Lisa: Have you unpacked the boxes in your office yet?
Julie: Yes, the file cabinet is done
Lisa: *pat* on your back
Julie: Some stuff ended up in a laundry basket, though :-/
Lisa: I think the laundry basket thing is a disease
Julie: then it’s a GENETIC disease [our mom always used laundry baskets to organize projects]
Lisa: I know I think I’ve conquered it though
Although I just looked over and realized I have a laundry basket with junk in it
Julie: :D Not cured, then
In most small businesses, the owners handle the financial data and recording themselves, and come tax time, they hand it over to a CPA. “My business is small,” they might think, “and I only have a few transactions a month; when I get big enough to hire employees, I’ll hire an office assistant to do it for me.” There are two problems with this proposal. First, by the time a business reaches that point, it will be much harder to change, adjust, or repair their bookkeeping practices. Second, the typical office assistant does not have the expertise to make those kinds of changes.