Keeping track of my business

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Soon I will be opening my own repair shop, I need to start considering bookkeeping. Trying to keep expenses down and would like to stay clear of hiring an accountant to keep track of my business.

I have heard of the program quickbooks but know little about it.

Anyone here know of the most dummied down version of quickbooks that might still be avail thru E-bay or better yet free on-line.

Im OK with computers but really need a hold my hand version of the software. Once I learn the basics I would up-grade to a newer version that would be able to do more for my business.

At this point I just need to record what my business is doing so that my accountant can tally up the pertinent info and steer me in the best direction tax wise.

Thanks for any advice.
 
Bookkeeping is very important, in case you ever get audited. When I started up, I got a "one write" check book. You should check into getting one. Also, open a completely separate bank account for the business. Separate credit cards as well. ALWAYS keep your business separate from your personal account. Take money out of the business by check Only, pay yourself whatever you want, but write yourself a check.

You might want to talk to an accountant, or do some research online. Lots of people go out of business for many different reasons, even when they are great at the trade / profession they are involved in.

Assuming you are a great repairman, you also need to be a great businessman in order to survive / succeed. I wish you well! Hard work, long hours, tough times... Remember the phrase "feast or famine"? You may have to endure some tuff times, but when the cash really starts flowing in, rember to keep money in the business account for the "famine" that's around the next unsuspecting corner.

I use Quickbooks, it's pretty intuitive, you should go ahead on acquiring the program... Even if it is just used for check writing, invoicing, proposals, etc. When I started out, I was hand writing every check. That was over 20 years ago.. Today I'm writing $10-20k in checks every month! Wish I could keep it all!
 
Oh, also... Very important! Get in contact with the SBDC in your area. Lots of great help thru them. Most of it for FREE. Go now. You can thank me later!
 
I second the Quickbooks. It enables you to see at a glance what you are doing, it allows you to print end of month statements for your accountant and much more.

But remember it's only as accurate as what you put in. It's important to keep track of every little expenditure, it only benefits you in the end.
 
I have been in contact with the SBDC in my area and have used their services every chance I can get.

Not knowing enough about quickbooks I need to ask...is there a version that is released every year that is only good for that year or can I use an older version of the software to manage my business.

Is there a recommended version that is maybe more simple to use than others ( assuming I do not have to go and buy the latest version and us it)
 
You dont have to update every year. Often times it is new short cuts, etch that they have built into the system. Don't skip on book keeping. It may not seem important at first but trust me it is.
 
Quickbooks Pro is a good choice. I'm using 2013 version right now. I've used in for over 14yrs to keep track for my Accountant.
 
I have been in contact with the SBDC in my area and have used their services every chance I can get.

Not knowing enough about quickbooks I need to ask...is there a version that is released every year that is only good for that year or can I use an older version of the software to manage my business.

Is there a recommended version that is maybe more simple to use than others ( assuming I do not have to go and buy the latest version and us it)

I would buy the latest version. It is supported and updated regularly, so you can keep current on taxes, mileage pay (that's right, any miles you put on your vehicle running for parts or whatever, is allowed).

There are so many things it will track and calculate for you, it's well worth the investment and the time to learn it.

As long as you enter everything that is transacted and allowable, you will be amazed.
 
You can download a free trial here http://quickbooks.intuit.com/pro/
Top right of the page for the download.

A lot of my customers use it.
Since you can send your company file via email you don't have to have a local tax accountant either.
 
A couple of thoughts...

depending on your business model, incorporate. it will keep your personal assets separate from the biz. and definitely only take money out of the business account to pay for inventory, etc.

as was mentioned above, quickbooks is a great program and it is not too hard to learn. buy the newest one and navigate through it for a while and learn all the menus. you'll get it in no time.
 
You dont have to update every year. Often times it is new short cuts, etch that they have built into the system. Don't skip on book keeping. It may not seem important at first but trust me it is.

I understand it is important and am not trying to skimp.
 
We used Quickbooks Pro. for over a decade. It worked great. covered everything from payroll to sales tax. It's also priced pretty reasonably for bookkeeping software, considering it's capabilities.

Best bang for the buck for bookkeeping, inventory control, invoicing, vender payout, payroll, expenditures, taxes, vehicles, and much more.
 
The updates can be done over the 'net, and it takes less than a minute.

I do it every week the day before payday to keep up with the tax tables and new rules and regs that the govt changes seemingly every second.

IMHO the updates are good insurance in case you ever do get audited, everything you have done is up to date.
 
Any costs for the purchase of bookkeeping software and up dates is also 100% tax deductible. :thumbup:
 
I just want to make a suggestion that has nothing to do with bookkeeping software but could make it easier to do your bookkeeping.

Don't get happy with open ended accounts or even if you need 'em. I used to run everything through a special account that was stored payments at all my vendors to be used for billing. At the end of the month I had one account for outside vendors to pay for and from that I was able to break down out the door parts vs. inventory.

I also tried to make sure I had a parts pro that would do the work for me. I didn't have time to call around to several vendors looking for that "one" part that was hard to find. I made one phone call and my parts pro did the work from there which made that account easier to deal with.
 
We used Quickbooks Pro. for over a decade. It worked great. covered everything from payroll to sales tax. It's also priced pretty reasonably for bookkeeping software, considering it's capabilities.

Best bang for the buck for bookkeeping, inventory control, invoicing, vender payout, payroll, expenditures, taxes, vehicles, and much more.


Yep

Any costs for the purchase of bookkeeping software and up dates is also 100% tax deductible. :thumbup:


And yep.
 
I understand that I need to start saving receipts for anything and everything that I could possibly justify as a shop/business expense but I am wondering about fuel costs.

Having a few different vehicles and using them for more than just business purposes has me confused.

I do not mind pushing the envelope but I do not want to try and claim anything that is going to send up a red flag with the IRS so how do you guys keep track of your fuel costs?

I have been spending alot of time on-line figuring out the quickbooks, I ordered an older version of quickbooks (that was cheap) from E-bay just to get even better familiar with how the software is used ( cause evidently it really has not changed a whole lot at its core ) but can you guys that use it give me some examples of how you keep your receipts?

Once I am more familiar/cofident with how it is used I will order the newest version.

Assuming you have separate folders for fuel receipts, another one for shop improvement expenses, maybe another one for shop equipment ect ect but Id like to verify and hear what others are doing.

How about the building in which I am renting for the shop, I have put a tremendous amount of labor into the building, I understand that the materials are deductible ( if I had bothered to save the receipts ) but how about my labor?

I had to build within the area a minimum 100 square foot office space ( as an example ) to be compliant with the requirements for getting a dealers license ( which I am still working on ) and so that took alot of time, seems to me that I should be able to claim something for that but according to the accountant that I am considering to use I cannot. If I had to pay someone to come in and do that office space I am sure the bill would have been approx 6000 dollars.
 
I understand that I need to start saving receipts for anything and everything that I could possibly justify as a shop/business expense but I am wondering about fuel costs.

Having a few different vehicles and using them for more than just business purposes has me confused.

There are a number of ways you can deal with your vehicles, fuel costs, business/personal mileage, maintenance, repair, etc.
One way is to buy mileage books for each vehicle, you can keep track of business vs. personal mileage. Business mileage is tax deductible. Presently the rate is 55.5¢ per mile.
Another way is to keep track all vehicle costs, including gas, and at the end of the year deduct the personal miles from your total miles, figure your percentage of business vs. personal miles, and deduct the like percentage ( of business mile) from your annual cost of operation per vehicle.

I do not mind pushing the envelope but I do not want to try and claim anything that is going to send up a red flag with the IRS so how do you guys keep track of your fuel costs?

I have been spending alot of time on-line figuring out the quickbooks, I ordered an older version of quickbooks (that was cheap) from E-bay just to get even better familiar with how the software is used ( cause evidently it really has not changed a whole lot at its core ) but can you guys that use it give me some examples of how you keep your receipts?

I use a "Neat" copier to scan my receipts. it allows me to not worry about losing the actual receipt, as I have a copy in both my quick books file, and my "Neat" file in my computer. I still keep the originals, but if I need to see a receipt, or if my accountant, or the government, or anyone needs to see a receipt for ANYTHING, I simply pull it up on the computer. The NEAT system also gives me a full breakdown of everything on the receipt, too. Material, labor, sales tax...


Once I am more familiar/cofident with how it is used I will order the newest version.

Assuming you have separate folders for fuel receipts, another one for shop improvement expenses, maybe another one for shop equipment ect ect but Id like to verify and hear what others are doing.

WHen you begin set up of Quick books, you can also set up various files, and accounts. For example, your shop, you'd need a "folder" for Utilities, rent or mortgage, equipment purchases, supplies, inventory, maintenance and repair, etc.

How about the building in which I am renting for the shop, I have put a tremendous amount of labor into the building, I understand that the materials are deductible ( if I had bothered to save the receipts ) but how about my labor?

Any labor ( except your own) is deductible. Pay it with a company check. It is deducted from your gross profit at the end of the year, before income taxes are assessed.

I had to build within the area a minimum 100 square foot office space ( as an example ) to be compliant with the requirements for getting a dealers license ( which I am still working on ) and so that took alot of time, seems to me that I should be able to claim something for that but according to the accountant that I am considering to use I cannot. If I had to pay someone to come in and do that office space I am sure the bill would have been approx 6000 dollars.

It would have been easier, for you, to pay someone else to do it. As the business owner, you time, is not deductible. Once again, Any labor ( except your own) is deductible.
 
As was suggested I am looking into a one write checkbook, doing a Google search for one write checkbook I cannot see what this is or find any explanation of how this is different from a normal checkbook.

Can someone fill me in?
 
The term "one write" may be a proprietary term, but the company I used to get my office supplies from was called NEBS (New England business supply) they may have changed their name by now.

This type of check:

"The One Write Manual Check System Advantage

One write manual checks are an efficient manual check system. They enable you to keep track of all your expenses in one place and in one step.

As you write each check, the information copies itself onto the journal and ledger at the same time. This eliminates writing from duplication of effort. With many systems at your fingertips, you can find the system that is right for your one write business needs.

Folding boards protect your checks and journal sheets, and are portable for use when you are on the go with your business. Double window envelopes save time in addressing and stuffing.

If you have any questions about our one-write products, or need any help with your order, please call us at 800.379.7969"

Here is an example: http://www.formmasters.com/onewrite.htm
 
Looking for input from small ( or large ) business owners not speculation, thanks.

Someone made a comment to me recently that I wouldnt see the owners of the shop I am employed with now for several weeks. This is not the first time I have heard this from fellow employees at the end of the year as we are in now. The comment was followed by the statement that the boss was out spending all his money so that he would be within a lower tax bracket.

Ok I get this but I am confused in that the shop although well equipped could sure use some stolen/abused equipment replaced and this will almost surely not be done anytime soon.

IRS will only allow certain deductions to take place ( there is a guideline although I have been told that it is sketchy ) so what could these business owners be doing with this money.

I am certain that its not going to some charity but more likely blow up their nose.

I just recently learned that my wages ( and my wife's ) were tax deductible. ( Shows you how much I know about small business ) I have been wondering why small business owners that I have spoken with have mentioned that they get a salary, it had me confused cause in anticipation of start-up expenses I was not planning on drawing a salary for several months but now that this has come to light I guess I had better figure out a way to pay myself one way or another.

My wife suggested this A.M that possibly end of year bonuses were tax deductible, that maybe my current employers gave themselves a tax deductible bonus and they are out spending it.

Is this a possibility?
 
you need to find a tax- accountant or attorney.
Tax deduct-able wages are from the taxes filed on the business, the wages will still be taxed on your personal return.
if you are planning to start your own business a lot of research/planning should take place to protect yourself. Lawrence
 
you need to find a tax- accountant or attorney.
Tax deduct-able wages are from the taxes filed on the business, the wages will still be taxed on your personal return.
if you are planning to start your own business a lot of research/planning should take place to protect yourself.
Very good advice from VDART

I have a small hops farm 1/4 acre here at my house since I cannot work full time due to illness. I pay myself minus all the usual taxes. the gross salary is deductible along with equipment purchases/depreciation ie a tractor. anything put into the business is deductible. Power, heat, phone, internet, improvements, postage, advertising and insurance for a short list. If you claim a loss at the end of the year it comes off your personal income at the end of the year. Get a good local tax person that is familiar with the operation of a small business. It is well worth it and their fees are also deductible from the business! You do have to have a legal business though not just a hobby. A llc is fairly cheap to establish. Hope it helps.
 
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