What you need to know from “Day 0”™

Presented by: Katrina M Harrell, President of The KM Harrell Group, LLC

CEO & Founder, Your Simple Bookkeeper, Inc.www.yoursimplebookkeeper.com

Present:

The KM Harrell Group, LLC Online Business Development & Management Consulting Firm Headquartered in Clayton, NC. Get “unstuck” and transform your vision into reality with sound,

practical business management practices as well as innovative business development ideas and strategies. “Our passion becomes your inspiration. Our knowledge becomes

your foundation”

Your Simple Bookkeeper, Inc. Innovative bookkeeping and accounting firm Build on a model of providing web-based virtual bookkeeping services

to micro and small businesses. Our fees start as low as $35 per month and include services not typical of

accounting and bookkeeping firm.

FREE Webinars

Weekly Live Internet chat

Affordable High-Quality bookkeeping services

Monthly newsletters

Bookkeeping tips via Facebook, Twitter, blogs, vlog.

Web-based virtual accounting services.

Recordkeeping and Bookkeeping education for small businesses.

Small business community on our website

Strategies to help you align your business profit goals with your accounting and bookkeeping needs

Search: Katrinamharrell and Your Simple Bookkeeperhttp://www.yoursimplebookkeeper.com

888.449.4145 toll free888.767.1966 fax

919.508.7608 officeinfo@yoursimplebookkeeper.com

Skype: katrina.yoursimplebookkeeperTungle.me: Katrinamharrell

PO Box 67Clayton, NC 27528

At the end of this presentation, participants will understand the basic concepts, tools and requirements needed to successfully start a business and make meaningful decisions.

Starting a business is exhilarating challenging, risky and fun. It’s impossible to know all there is to successfully start and manage a business with laws and requirements constantly changing.

Participants will learn what is important to know while your business is in start-up. ◦ Basics of effective recordkeeping

◦ CPA, Accountant, Bookkeeper what’s the difference?

◦ How to choose a great bookkeeper and CPA

◦ Things to consider when selecting the proper business entity

◦ IRS requirements

◦ How to avoid overspending

◦ Managing start-up cash flow

Entity Selection Various types of entities and a basic understanding of them The tax and IRS implications of various entity selections

IRS Requirements What do they require? How to ensure you avoid an audit

Recordkeeping Basics A brief overview of recordkeeping basics

Managing Start up cash flow What to consider in managing cash flow How to save money when starting your business

Selecting a bookkeeper/CPA What to look for When do you need one?

Does not need to be complex

Can be based on the size of your business

There is no IRS requirement for how records should be organized

Should be easy to follow

Can be computerized or manual or combination of both

Identify all your business records Purchase a small accordion file File folders Labels Hanging files Retention Schedule Sort and organize:

◦ Organizational documents (permits, licenses, articles, etc)◦ Tax documents◦ Vendor records◦ Inventory records◦ Customer records◦ Accounting Records◦ Bank Records◦ Contractual Agreements◦ Forms Used in Business

Keep these in a separate permanent file for easy access.

Should include:◦ Articles of Incorporation◦ Bylaws◦ SS-4 Tax ID Registration◦ Register of Deeds ◦ Shareholder Minutes and Consents, Board Minutes and

Consents, ◦ Action of Incorporator, and amendments to the various

corporate documents. If your business is not a corporation, then the other documents

that may be relevant here are partnership agreements, LLC documents, consents of the owners and similar records.

Tracking expenses properly

Tracking sales

Inventory control

Employee records and payroll

Time wasting searching for records instead of making money

Compliance with regulatory departments

What’s the point?

What is the Difference?

Bookkeeper – “The Number Cruncher”

•Records data•Processes data according to IRS guidelines•Processes payroll•Ensures data is captured and process accurately and precisely•Reports accurate and timely financial data to owner•Assist in managing internal control in business•Tax preparation

What is the Difference?

Accountant – “The Interpreter”•Analyze the results•Interprets financial reports to management (what do the numbers MEAN?)•Can perform bookkeeper functions•Create internal control processes to safe-guard business assets•Perform internal audits of business•Focus – “How do the numbers effect the overall business?”•Help ensure deductions are maximized•Strategic planning and budgeting•Minimum Bachelors Degree in accounting•Extensive corporate (private) accounting experience

What is the Difference?

CPA – “The Equalizer”•Same as Bookkeeper and Accountant•Create internal control processes to safe-guard business assets•Perform external audits of business•Focus – “How do the numbers effect the public?”•Help ensure deductions are maximized•Tax and Investment planning•Represent at IRS audits•Regulatory •Required to maintain training•State licensed – each state licenses CPA•Extensive Public Accounting experience

Experience Need of business Credentials References Track-record Knowledge about small business Visible Accountability (YOU and THEM) Personality PROACTIVE

Limited Liability Company◦ Easy to form

◦ Limited liability

◦ “Pass-Through”

◦ New form

◦ No tax benefit

Sole Proprietorship◦ Easy to form

◦ High liability

◦ SE tax on Net Income

◦ 1040

Corporation◦ Separate entity

◦ Cost more to form

◦ More available deductions

◦ Low liability

◦ Double Tax

S-Corp◦ LLC taxed as corp

◦ Complicated

◦ Not for all businesses

◦ IRS form deadline

◦ “Pass-through”

DON’T !

Create a budget

Stick to it

Bottom line – Does it make cents (sense)?

Be creative “Think LEAN”

Think Big, Act small

Business, not Personal

Internet

Cloud-computing

Saas (Software as a Service)

Network

Bookkeeping system from “DAY-0”™

Free options

“Cart before the horse” syndrome

LIVE Broadcast every Wednesday 2-4pm

Video archive on website

October 1st FREE Bookkeeping services

FREE Tax review services

Yoursimple Bookkeeper in-a-box coming Dec 2010

10-NON Marketing ways to Grow your business

Micro Business Support Services◦ $0-$150 per month◦ FREE accounting software

for start-up◦ Monthly review◦ Bill payment and

bookkeeping◦ Business entity consulting

Mailing list:◦ Updates◦ New promotions◦ Tax tips◦ FREE Business guides

To schedule your complimentary consultation go to: www.yoursimplebookkeeper.com and select the APPOINTMENT tab

Katrina M. Harrell919.508.6708

katrina@yoursimplebookkeeper.com