Bookkeeping: What Should I Be Keeping Track Of?

Bookkeeping: What Should I Be Keeping Track Of?

As a small business owner, should you be keeping records or copies of: Receipts? Bank statements? Everything?Nothing? The answer is: all of the above. You should be keeping any receipts, copies of your bank and credit card statements, and any information that will be used to prepare your tax returns. What is Bookkeeping? Bookkeeping is the keeping of a business’s financial records. It involves keeping track of your income, expenses, receipts, and balances in all of your accounts. When we advise clients to follow proper bookkeeping procedure, they often ask: What is the easiest way to keep track of things?Do…
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TL;DR: Steps to a PLLC

TL;DR: Steps to a PLLC

Have you read our post on being a PLLC in Washington and realized you need to set one up? Here is our step by step checklist to switch to a PLLC from a Sole proprietorship.  TL;DR: Check out the guide and let us know if you have any questions! P.S. Want to learn how to manage your money better as a therapist? Now you can learn directly from Toni Cameron, CPA with our new on-demand webinars! Check out our most popular webinars here.
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Do I Need to Issue 1099s to People?

Do I Need to Issue 1099s to People?

Do I Need to Issue 1099s to People? Have you paid anyone over $600 for a service? Then you probably need to issue them a 1099. Let’s talk about best practices. BEFORE you pay someone for service — say editing or supervision services — you should request a W-9 from them. A W-9 will include a contractor’s Name/Company name, Address, SSN/EIN, and the type of entity they are. This information is needed to provide a 1099-Misc to someone if it is required. But when do you need to issue a 1099-Misc? When: You’ve paid someone over $600 The payment was…
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What is an EIN?

What is an EIN?

An EIN is a nine-digit number assigned by the IRS and used to identify your business. It’s like a Social Security number for your business and, in many cases, can be used in place of your Social Security number on forms and other types of paperwork. We recommend that all businesses apply for and use an EIN.. If you are a sole proprietor, you need an EIN if you have any of the following: Employees A retirement plan, Have or are planning to buy an existing business You are a partnership, LLC, or PLLC In addition, some states require you…
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Best retirement accounts for small business?

Best retirement accounts for small business?

What Retirement Accounts are Available for Small Business Owners? Well…it depends (you knew that was coming right?). Before giving an answer, I always ask: How many employees do you have? Are you an S-Corporation? How much do you want to contribute to your retirement accounts? Do you want as simple a solution as possible? Three types of accounts work best for small business owners or freelancers: Simplified employee plan (SEP) IRA Solo 401(k) Simple IRA *less half of your self-employment tax What does this chart mean? A SEP IRA is very similar to a regular IRA. The contributions come from…
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Why should I switch from Excel to Quickbooks?

Why should I switch from Excel to Quickbooks?

Why should I switch from Excel to Quickbooks? It’s a common story I hear from clients: I keep track of my income and expenses in Excel. I have all my expenses in Excel and I use Stripe to record my income. While Excel is a powerful tool (I use it everyday), it isn’t ideal for bookkeeping. Small business owners should switch from Microsoft Excel to QuickBooks Online for a number of reasons: 1. QuickBooks saves time and money: Excel requires you to manually record each of your expenses into a spreadsheet. This process is time-consuming, not to mention the time…
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How To Pay Yourself In Private Practice?

How To Pay Yourself In Private Practice?

How to Pay Yourself in Private Practice? For most therapists in private practice, it depends. No, really — it does. I ask each client a handful of questions when trying to determine how much they should compensate themselves: How much work do you do? Do you have any employees? How much money are you currently making? Are you a PLLC or LLC? Are you an S-Corp? (The below information does not apply to S-Corps because S-Corps require a reasonable compensation.) Generally, I’ll look into your records and cash flow to help determine your salary.  However, the following chart works well…
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PLLC vs LLC

PLLC vs LLC

What’s the difference between a PLLC and an LLC? An LLC is a Limited Liability Company. If set up properly, an LLC will protect your personal assets, such as your house, car, and other personal belongings. Establishing an LLC separates your personal assets from your business assets. If your business fails, only your business assets can be used to settle its debts.. Most small business that want to incorporate form LLCs. But what are PLLCs, and how do they compare to LLCs? A PLLC is an LLC for certain industries. If your industry requires you to have a license or…
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Federal Taxes aren’t the only taxes?! B&O Explained.

Federal Taxes aren’t the only taxes?! B&O Explained.

At what point do I have to register my side business or freelance work? A business registration is a simple form to license your business with the state. Various states require this at different asset or income levels. Washington State does not have an income tax, but it does have Business & Opponency(B&O) tax along with Personal Property taxes. Step one is registering your business with the Department of Revenue(DOR). Yes, you need to register with the State of Washington, if any of the points apply to your business: Your business is required to collect sales tax Your gross income…
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