Good evening all!!
We are officially one week into the Business Blog Challenge with Sara Duggan.
Today's blog prompt is: I've filed my business license and have my EIN, my next step is...
Banking - Designs by Hebrew Hands will be operating as a sole-proprietorship, and I want to keep my personal money separate from the businesses money. Because I now have my license & EIN, I'm off to the bank to set-up a bank account. This will allow for any and all purchases for the business to come strictly from this account, and an easier way to keep up with receipts (monthly statement).
Next...
Accounting Software - Let me start with this... math was not my best subject, I can count money, add taxes, and balance a check book, but I'm so sure that there is more to business accounting than this. Perhaps in the beginning this may be all I need, but as the business grows, so will the need for me to have accounting skills and software.
Lastly... ( for this post at least)
Business cards and flyers - I have to let people know that I am open for business!!
I can put flyers in the neighborhood market, local libraries, at the local university campus. And I can officially give cards out when I'm shopping for supplies, or simply running errands.
Am I on the right track?
What would you suggest?
Until tomorrow my fellow hookers...
Shalam...that is to say Peace!
My accountant told me to not open a business account because it would be more money out of your pocket to psy for the fees if this new account as well. Only if you make a lot if money and have to pay employee or bills to your business building. If its from home you can keep one account and even get a discount on taxes because your business is in your own home. Electricity and such as well can be deducted. I recommd to not get another account and hire an accountant. They can really help you save in areas you might not have thought of. Even gas for your car.
ReplyDeleteThanks Candy Lifshes, this is good to know! So then instead of opening separate account, I had better get an accountant. For a start-up business operating on a zero to nothing budget, do you have any recommendations on how I might keep my finances separate. Because I will get a file box and a calculator for the moment.
ReplyDeleteThanks!!
The accountant told me to keep all my recipes that I spend on work stuff, yarn and supplies. Anything you wouldn't have bought unless you didn't have to for the business, even my phone. And I keep all my recipes from ebay, etsy, pay pal that I have to pay for my website and ads per month. Keep it all in it's own folders, in it's own place. Really not hard. And if you have a good accountant he can take care of everything you need in the way of the business with taxes and ways to save for just a small fee per month. It's really worth to get one. If you make enough to pay him that is. If you don't and want to wait ot hire one, just make sure to keep your stuff in it's own places for when he asks for it later, keep it seperated by year, no need to go by months.
ReplyDeleteThanks you, then that's exactly what I will do. I totally appreciate your response!! I don't know about the other readers, but I am operating on a very small budget right now, and an accountant I can't afford at the moment. But your shared information has given me a new goal to work towards.
ReplyDeleteThanks again!
HI..just to tell you how I have done it. I opened another account..not business..personal. I put only money spent and made into that account. I want to keep my stuff separate from the household account. Doing it this way allows me to know exactly what is going out, who it is going to, who is paying me. I have not hired an accountant as my business is still small, and it hasn't been too hard to keep track of my stuff. I do keep a ledger of my thread purchases, and my sales of thread. Things made by me are numbered and also have a separate ledger for those. My business is growing and so far I have been able to do it without the help of an accountant. Good luck to you.
ReplyDeleteNot sure when I'll be able to hire an accountant but right now the funds are separate. They have to be. Home based businesses do get some perks but you do have to maintain accurate records. If you do claim your business an accountant can be very beneficial.
ReplyDeleteThe first year I had to pay self employment taxes, I asked our H and R Block gal and according to her what I was doing wasn't really considered a business but a hobby.