Something I'm doing

[Akasa]

I'm starting a business.
I've gotten my Federal Tax ID
Filed with the state so I can start taking sales taxes
Filed sole proprietorship/fictitious name(Once that is final I can get a bank account in the business name)
Got my domain
My mother(who has been a graphics designer ALL MY LIFE) is working on a logo for me
I have an appointment with vocational rehab for orientation, I qualify for help with them so I'm going to ask for 1) start up funds and 2) them send me to school for business management courses

I already have SOME supplies, and I have some patterns saved that I'm going to be making, as well as some things I'm trying to figure out how to make and make my own(How big is the pearl? etc.) The world of beading is once it's made once, people will figure out how to make it and put their own spin on it.

[Kittish]

Good luck to you! When you get it all rolling, I'd be interested in seeing what you're offering.

[Pixelated]

What Kittish said. Congratulations and good luck!

[Rosco the Iroc]

Good for you!
I'm heading down the same path.

[greek_jester]

Good luck

Just a few bits and bobs I've picked up as an accountant:

1) Keep every single receipt. All of them. And if they're heat printed receipts, photocopy them and staple the original to the copy (they will fade waaaay too quickly to be useful!)
2) If you have enough receipts to make it necessary, file them. I usually file by supplier name, then by date within the supplier, but some also do purely by date/when they're paid. It's up to you, just make it consistent!
3) If you make a business-related cash transaction and don't have a receipt, write it down (date, amount, what you bought, and whether the money came out of the business petty cash tin or your own pocket).
4) Keep all your bank statements! You'd be amazed how many people don't bother with this and then have to order them all at the year end.
5) If you take out a loan, keep the paperwork. If the loan is in the business' name you might be able to claim repayments/interest (not a US accountant, so I'm uncertain about this one).
6) Look into getting an accountant. A decent accountant will be able to give you advice on what paperwork you need to keep and in how much detail, and may be able to recommend a software package to you for keeping your books (there are definitely some we advise our clients avoid as they are pretty dire!) They'll also help you avoid the more obvious tax errors, and give some basic advice on other incidentals such as business insurance and, should you develop in that direction, employment contracts and the like.

[Rosco the Iroc]

I was looking at business accounts. wow They vari from bank to bank for costs. AT least she can use Square. Being they are antigun I have to use someone else to take cards like the banks or http://plusbyems.com/ . Good thing is it's going to be cheaper them them so *sticks out tongue* phhhttt on square.

[Akasa]

Um... Square? Do I need a PM?

Good luck

Just a few bits and bobs I've picked up as an accountant:

1) Keep every single receipt. All of them. And if they're heat printed receipts, photocopy them and staple the original to the copy (they will fade waaaay too quickly to be useful!)
...
6) Look into getting an accountant.

So far I've only had one receipt... I think it's in the trash... it was $3.10 so I'm not digging in the trash for it, but thank you for reminding me!
As for bank statements, they stay in my online bank account file so I would just have to print them out. I have paperless, so I can print them off at any time.
I JUST opened my business bank account yesterday. So YAY ME!

[Ironclad Alibi]

Um... Square? Do I need a PM?

Square is a credit card processing service you can use with a smart phone.

[Akasa]

Square is a credit card processing service you can use with a smart phone.

Why not use the paypal slider thingy?

[EricKei]

Awww.. Are you saying we shouldn't recommend something like MAS90 to someone with 10K a year in total sales...? I mean, that would only cost about twice that amount to get it up and running...

Double and triple his recommendation about scanning in those heat/blaster receipts. I've even had some start to fade or turn black in my wallet on a hot day x.x Not a bad idea for other receipts in general. Once you've done this, make a habit of entering them into your accounting package at least daily (the ideal would be as soon as you do them, but that's seldom realistic). Keep them sorted, by month (one folder for each month) and in date order, at the very least -- Invest in some "Banker boxes" (those heavy-duty thick cardboard suckers) to hold it all. Your accountant will LOVE you for this, especially if you know how to code them properly. Note that some accountant fees are deductible if you live in the US...so, ask your accountant.

[Akasa]

<.< >.>

Accounting package?

[greek_jester]

Accounting packages such as Sage or Xero are a way for business to keep track of what they are spending where, who they owe money to, and who owes them money.

At its most basic, you post your bank statements to it, allocating payments to the appropriate categories (e.g. electric, gas, motor expenses, sundry (i.e. I have no idea what this is)) and your income to the appropriate categories (e.g. receipt from customer X, refund of electric, money put into the business by the business owner, other income (i.e. I have no idea what this is)).

Done properly the business owner can tell at any moment in time exactly how much money they have, what is owed to whom, and who owes them money. Depending on the package they can also deal with various taxes etc.

Depending on how much business you do it will probably be more cost effective to keep your own records at first, probably with a spreadsheet or physical books (depending on your preference). I still advise having a word with an accountant, though, as they'll have a better idea of any appropriate law and ordinances for your area when it comes to setting up your own business from home.

[EricKei]

For smaller businesses, programs like Quickbooks or Peachtree, as well.

Sundries/sundry, aka "Other expenses," basically just means "etc." In other words, stuff not important enough to have its own category. "Other income" functions similarly.

The accounting packages (programs) all come with a choice of preset "Chart of Accounts" lists you can choose from to help you sort and code expenses/income. Basic ones normally start at around $200. Also, you can go for a free trial on some, but I'd treat that as a "free demo" program and use it to learn, rather than actually keep your books in. They often come with sample files you can mess around in safely. Ask your accountant; they may even have a totally free edition of something like QuickBooks Simple Start.

[Akasa]

I found this site called Wave. It's free, and specifically for small business use.

[greek_jester]

I found this site called Wave. It's free, and specifically for small business use.

Not one I've come across, so I'm afraid I can't help there. Any US accountants who can weigh in on this one?

Sage and Xero I know (although Sage is more powerful than you'll need at this stage). Xero has the advantage of being cloud-based, so if your computer goes tits-up you won't lose everything. You can also tie it into your bank account so that all your bank transactions will be downloaded, and all you have to do is allocate them (or, for regular transactions, set up a rule so it'll do it automatically) every so often. You do have to pay a monthly subscription for it, though, so maybe it's something to think about later.