How do I make sure I have enough money to pay my taxes?
Tax payments plague small businesses. Planning is your best defense. Hoard your cash all year long if you expect a large tax payment at year end. Assume taxes will equal 30% of your net profits.
Many small business open a separate account for taxes only to raid the account for an emergency. Better to have a 3 month cash cushion for emergencies and use fiscal restraint even when you see your cash balance rising.
Thinking about making a major purchase? Make sure you have enough cash for the purchase and taxes.
Should I switch to QuickBooks Online?
We love QuickBooks Online. QBO is easy to access and keep up to date. Sadly it is not ready for all our clients.
If you are a small business with an inventory to manage, you need to progress invoice or your existing QuickBooks file is too big, QBO is not for you. If you are a very small start-up and are concerned about fees, using QuickBooks Desktop or even an excel spreadsheet might be a better option.
What is the first thing I should do when I start a new business?
We get this question all the time. Immediately, keep your business and personal expenses separate by opening a separate bank account and credit card. Even if you don’t have a tax id number for your business yet, have separate accounts. Read more here.