Entrepreneur Tax Lessons

I am completing year end taxes for my business. I have a bookkeeper and an accountant. My bookkeeper has been helpful, and my accountant I have had minimal contact with. I learned earlier this year that my accountant sent in the wrong federal tax id number this year (2009), so my state taxes were filed incorrectly.

I was trying to complete year 2009, when in the middle of finding two expenses I was sidetracked by the IRS. I was told about missing filings between the years 2002-2005. There has been no filed completed and shows no record of one every being made. After an hour I hung up the phone.
At the end of the day I was contacted by the State Revenue office notifying me of fines due.

I believed that paying bookkeepers and accountants kept them doing the right thing. I was wrong. They are not liable for any fines. Make sure to double check any work and take control of your business.

Taxes and Entrepreneur Love Story

For some reason my company has been set up as a C Corp, which will be discussed later. Additionally, it has been set up on a different calendar than the January-December calendar. This means that July 31st, is the end of my year. Which means that I am scrambling to complete my year end taxes.
This is obviously not my favorite time. I am going through every expense and trying not to kill Quickbooks. I have figure out that Quickbooks is not to be used by a new user. It is meant to be used by and Accountant or Bookkeeper.
I just quickly wanted to talk about how much taxes can weight me down. I thought I would not have to worry about taxes, but they are a real downer. I have had to classify all of my expenses and in the middle of this try to figure out how I am going to to pay and when I am going to pay my expenses. Putting me knee deep in a cash flow problem. Here are some things that I have learned.
1. At the end of each month reconcile your accounts, it makes it easier at the end of the year end.
2. Go to your local library and check out some tax and accounting books so that you know what is going on.
3. Ask as many questions as you can from your bookkeeper and accountant. They should have to explain everything.
4. Seek counsel. References are not enough, how do you know your accountant is doing the right thing?
5. Take a deep breathe. It will be okay and you will be able to cover your liabilities just take a deep breathe and it will all be under control.

Good Luck!

Entreprenuer 101

This Entrepreneur has started the business. Now what? Someone asks for identification of insurance. A Google search provides a list of some insurance providers will lead you to some options. Once you get the Insurance company on the phone they will ask for your Tax ID. If you are like my sister you have a look of shock on your face. Tax ID, who me? Every company, even yours needs to be registered with the government. They just love you that much they want to make sure they can help, I mean, take some money. Don't call a lawyer, unless you have a friend who likes to give out free advice. Again log on to your computer and do some digging.
For New York State a quick google search provided me with the state link New York Registration.

It does take some work to get through all of the information, but for $150, you can have a registered LLC! Now you just have to get that pesky Insurance company back on the phone and proudly announce your Tax ID number.