Business is hard-Lessons learned from Kickstart Accounting, Inc team
All about 1099s
If you own a small business, chances are you will be dishing out some 1099s this year. Not sure what 1099s are, who should be getting them, and when they're due? Worry not – we've got you covered. Here's everything small business owners need to know about this common IRS tax form.
What are 1099s?
To put it simply, a 1099 is a form used to claim miscellaneous types of income that fall outside the scope of wages, salaries, and tips. These outside income sources can include real estate transactions, self-employment, interest, short term contract work, long term contract work, and more.
Who Gets 1099s?
If you pay an independent contractor more than $600 between the months of January and December, you must file a 1099 for that contractor. The form details the total payments issued to said contractor, letting the IRS know how much in taxable income is owed. If you paid the contractor less than $600 that year, there's no need to file a 1099.
Wondering what the difference is between an employee and a 1099 contractor? This is where things can get a bit tricky. In short, to be considered an independent contractor, one must be able to have control over the work he or she performs. Basically, you're not this person's boss. You are only using his or her contracted services.
When Are They Due?
Ideally you want to get the contractor his or her copy of the 1099 before January 31st. When it comes to filing with the IRS, electronic filing is the easiest and safest solution. Better yet, if you file electronically, the IRS allows you to do so up until April.
Small business owners face unique challenges when it comes to bookkeeping. Find yourself not knowing where to start? No problem! We specialize in helping small businesses keep their books in tiptop shape. Give us a call to discuss your small business bookkeeping options DanielleH@kickstartaccountinginc
Running a new business can be a daunting task for women entrepreneurs, especially when seeking assistance from mentors or inspiring people who hold expertise in their relevant fields. Luckily, there are some great podcasts available for women who need some valuable guidance or insight into how a business works. These podcasts are creative, offer valuable advices or suggestions, propose novel and innovative business strategies, and inform about the shift and transformations taking place within the market milieu.
Some of the most popular and innovative podcasts for women entrepreneurs are both informative and inspiring. Here are a few you may want to check out for yourself.
BizChix is hosted by Natalie Eckdahl, a performance coach and business strategist. The basic aim of this podcast is to assist women across the globe in scaling their business, guiding them on things that they need to avoid to achieve success. In this podcast, Eckdahl interviews influencers from the industry who provide insight into how businesses can be developed over a period of time.
Stacking Your Team
This podcast is designed to help women entrepreneurs in becoming successful CEOs of their companies or organizations. This includes valuable information on attracting, as well as retaining, the best talent in the industry. Shelli Warren organizes guest interviews, training sessions, and coaching sessions that provide insight into how employees can be hired, removed from their job, or inspired to contribute towards the success of the business.
The Goal Digger Girls
The Goal Digger Girls podcast is in the form of a business workshop that focuses on helping women in accomplishing their dreams and achieving success. They train women on how they can work effectively to accomplish and tackle their goals accordingly. The podcast is hosted by Jenna Kutcher, a photographer and educator by profession.
Quit Your Day Job
This podcast helps the audience explore their sense of purpose in life and discover the unique set of talents they possess. Cathy Heller hosts the podcast and organizes interviews with inspiring people in the industry. These professionals share their personal experiences and narrate their journey of self-discovery to determine if their work goals are aligned with their identity.
Business Boutique is led by Christy Wright, a certified business coach and is passionate towards helping others in achieving their goals. This podcast was created to help women in earning or making money from the work they love to do. She guides people on how they can make money from their work goals and objectives in the best possible manner.
CEO Warrior is hosted by Mike J. Agugliaro and his partner. They help business owners with their work goals and provide them insight into the set of skills or tools that are presently working in the marketplace. This podcast helps struggling entrepreneurs with improvising their work practices, sharing with them stories of people who became multi-millionaires.
Have you ever considered franchising your business? Given the increasingly fast pace of the business world, franchises are often excellent tools when it comes to quickly growing brand reputation. The tricky thing is franchising can either make or break a business. The outcome all depends on whether or not you are prepared. Before making any big decisions, check out our list of important items you need to know about franchising your business.
Organization, Organization, Organization
Successfully franchising a business involves lots of preparation and organization. You need to lay out exact guidelines, rules, requirements, and other details for franchisees. Detailing everything beforehand is the best way to ensure the roll out goes off without a hitch.
Location is Key
You should scout out prime locations for your franchise. It is recommended you take the area, local demographics, and buying habits into consideration before choosing to establish a franchise in any specific part of town.
Get Professional Legal Help
Franchising without seeking the guidance of an attorney is one of the biggest mistakes you could make. Lawyers with experience in franchising laws know just what paperwork is needed to protect you, your business, and your franchisees.
Do Your Due Diligence When Selecting Franchisees
Franchisees are the ones who will be representing YOUR brand, so it is important to consider who they are and their goals. Don't forget to interview each candidate, as meeting and speaking with someone, especially in person, gives a deeper insight into their style than just a basic paper application.
Think it is time to explore franchising for your growing business? Keep the above tips in mind and you will be on your way to making a decision that is right for you and the future of your business.
Do you think financial documents and statements cannot be used as tools to develop and expand your business? Well, don't cut yourself short! The finances of your company are key to building a healthy foundation, so it is important to take them into consideration when calling the shots. Here are a few ways you can use your cash flow statement to make decisions that will grow your business.
Predict Future Deficits. Business owners should be preparing cash flow statements quarterly, but most corporate accountants recommended monthly analysis. This is because keeping track of funds coming in and going out of a business is the easiest way to anticipate future shortfalls. If you expect a deficit, you can make decisions beforehand that will lessen the impact.
Request Credit. You can also use your cash flow statement to show investors, creditors, and partners where your business stands when it comes to incoming and outgoing funds. Assessing this document monthly also allows you to determine whether or not it is time to request credit.
Calculate Investments. A portion of a positive balance listed on your cash flow statement can be invested as capital on the market, and therefore generating a supplemental form of income. This type of additional income is what is known in the business as “interest income.”
Wondering how much you can invest, how long it will take to pay back debts, or if you will be able to obtain lines of credit for your business? The answers to these common questions are found right there in your cash flow statement! If you want to grow your company without experiencing any catastrophic financial setbacks, you need to use accounting documents like the cash flow statement to your advantage. They offer so much more insight than what meets the eye.
With So Many Options, How Do You Know Which Accounting Software is the Best One for Your Business?
Let’s start at the beginning – why do you need accounting software? Accounting software makes it easy to monitor your business by tracking expenses, invoicing customers, and generating reports to help you analyze how your business is performing, all in real time.
There are at least 20 different options for accounting software on the market currently. Where do you start? This is often times the most difficult part of the process. Each program has its own strengths and weaknesses. Here is a list of items to keep in mind when selecting the right software for your business:
Costs. Costs can range dramatically depending on the features within the program. It is important to understand how the price compares to available features when choosing accounting software. You do not want to buy overpriced software or waste money on features you will not use. Find out if the software offers a free trial or demo before purchasing. That way, you know exactly what features you are getting before you commit to the software.
Usability. Ease of use and accessibility for all users.
Features . Many factors go into determining which features you need for accounting software, to include the size of the business, industry, and recordkeeping requirements.
How much does accounting software cost?
Accounting software varies in cost, depending on the number of features included, the number of users supported, and many other factors. Most accounting software companies offer cloud-based software as a service, rather than purchasing a software license, and charge a monthly subscription fee. You can usually choose from multiple plans, each varying in features. Monthly charges range from $10 and $50 per month. More expensive plans often include advanced features such as expense tracking, sales tracking, recurring invoices, automatic past-due billing, team functionalities, advanced reporting capabilities, inventory tracking, and purchase ordering. Many accounting software companies offer integrations to augment the software's capabilities or to connect it to another business program, at an additional cost.
What usability factors should you look for in accounting software?
To find the best accounting software for your business, you need to carefully consider how and where you want to use it and if anyone else will be using the system. Here are some factors to consider:
Multiuser access. Most accounting software products allow you to invite other/multiple users to the system and control the data they can see and the tasks they can access. You may wish to give your business partner and accountant full access, while only allowing your employees to use the system to track their time and invoice customers. Some systems allow you to invite multiple users at no additional cost; others provide accountant access but require you to subscribe to a higher pricing plan or pay extra if you want to add additional users to the system.
Multiple-business support. If you own more than one business, you may want accounting software that supports multiple small businesses under one account at no additional cost. Otherwise, you'll pay extra to set up separate accounts for each entity.
Cloud-based software and mobile access. Most accounting software is cloud-based, so you can access your account anywhere and at any time.
Which accounting software features does your small business need?
Accounting software offers many features and tools that can help you manage your finances. It should cater to your business's needs, making it easy to accomplish routine accounting tasks. It should also help you see the big picture of how your business is performing.
Many businesses say that ease of use and timesaving features are the top two things they look for in a program. Here are some of the features accounting software should offer to help you save time and better manage your finances:
Basic accounting features. Most small businesses can make do with accounting software that offers basic functions like invoicing, income, and expense tracking, financial report generation, and customer management.
Timesaving automations. Some accounting software can be set up to automate regular transactions. For example, invoicing customers every month for the same amount or sending a vendor a purchase order at the predetermined reorder point.
Tax preparation. Make your life easier with accounting software that helps you with your taxes. Be prepared for the upcoming tax season by having all of your activity up to date.
Third-party integrations. Accounting software can make it easier to run your business by integrating with the programs and services you already use, automatically sharing data between systems in real time. Popular integrations include Point Of Sale systems, payment processing, payroll, and advanced inventory management.
Pros and cons of the most popular software
PC Magazine has a great comparison of all available cloud based software. (https://www.pcmag.com/article2/0,2817,2458748,00.asp)
Questions on this topic? Reach out!