The Tax and Legal Playbook by Mark J. Kohler

Author:Mark J. Kohler
Language: eng
Format: epub, pdf
Publisher: Entrepreneur Press
Published: 2019-07-23T16:00:00+00:00

Get Help Implementing Your Accounting System

Be honest with yourself: Do you want to do the bookkeeping for your business? If so, great. But if not, who is going to do it? Have a plan! Yes, this is my best attempt at giving you an “intervention.” Look at yourself in the mirror and assess your level of dedication, knowledge, and available time to implement and maintain your books. However, while it’s fine if you have someone else do the dirty work, you still need a general understanding of the process and accounting system so that you, as the captain of your team, can oversee the process.

The following are five options to consider when it comes to divvying up the accounting duties.

Option 1: Learn QuickBooks and Input Items Yourself

I know this strikes fear in some of your hearts. In fact, this may be why your books currently aren’t getting done. But you still may want to hold off delegating any part of the process until you put in a few hours a week to learn the basics, like inputting figures. At the bare minimum, you need to be able to view and print reports and check the accuracy of the work.

Option 2: Hire a Family Member to Keep Up the Books

I love this idea when you have teenagers or young adults you are supporting financially. This is a great way to make them earn their keep and teach them about entrepreneurship in the process. They will learn about the heart and soul of small business by doing the books. Adding them to the payroll is also a great tax write-off.

Option 3: Engage a Local Bookkeeper

This could be a local college student wanting internship/externship hours or a seasoned bookkeeper with affordable rates. It can free up a lot of your time so you can do what you do best: Make money for the business. This is also a natural step in the growth of a business before choosing the next option. Remember, this person will probably not prepare your taxes or do significant planning for you; she will simply maintain your books affordably so you can focus on more pressing tasks.

GOOD TO KNOW:

DELEGATION PITFALL

Remember that just because you hire someone who can do daily QuickBooks tasks, it doesn’t mean you can ignore learning the software altogether. It’s important you have at least a cursory knowledge and don’t give away critical control. A wonderful feature of QuickBooks is that you can have different admin levels and passwords in order to delegate different tasks to individuals without giving them complete control of your books. Embezzlement is a constant threat, and you need to be able to access and double-check your books periodically.

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