Finding The Forms You Need

You know how at the end of the year you're working on those pesky 1099 forms but find that you don't have the contractor's social security number or tax identification number?

Very small companies and companies that use a lot of independent contractors need to use for W-9 get tax ID information from their contractors. It's a simple form to have your contractors fill out bfore they start working with you.

You can find that form here. (Note: This will change in future years.)

You can search www.irs.gov for IRS forms or pulications. They are generally available online.

Now you know, so no excuses!

Beginning with a new Bookkeeper: Documents and Information

Happy New Year!

People often decide that they want to start with a new bookkeeper in the new year. After deciding on who, and where and for how much,  the next big question is:  what do I need to give my shiny new bookkeeper in order for us to work together?

I've put together a list of documents that you'll need in starting with a new bookkeeper. Keep in mind that you'll need these document as of the date of either the opening of the business or the date of beginning the new records (whether you're choosing QuickBooks, Quicken, Excel, or doing the books by hand you'll have to choose a starting date).

• Checkbook stubs or checkbook register with vendor names, dates, and amount information.
• Business bank statements (checking, savings, etc.) 
• Business loan information (lines of credit, personal loans/equity, asset purchases, etc.)
• Copies of deposits including descriptions of income
• Business credit card statements
• Business expenditures made with personal funds (check, cash, credit card)
• Subcontractor/vendor information (name, address, taxpayer’s identification # either EIN or SSN)
• Customer/client information (name, address and how much they owe you) 
• Business taxpayer’s identification numbers (federal & state)
• State & Federal applications for filing online payroll taxes
• Employee information for payroll tax returns
• Federal and state tax returns for previous year's filing, if applicable
• CPA, tax attorney or tax professional's contact information, if you have one

A note about QuickBooks and downloading transactions. Many people want to be able to download transactions into QuickBooks or Quicken or some program.  To do that you'll have to talk to your bank and make sure that your bank has that functionality with the type of account that you have and that you're set up to do that. Many banks won't allow you to download QuickBooks formatted transactions from personal accounts and these days there are often fees for the privilege - I've seen them up to $16/month. 

Usually you need a separate pin for the software to access the bank's website and sometimes a specific log in to access the transaction. Sometimes you'll need to import them as you can't download them directly and sometimes you can just click one or two things and make it happen. There are time limits to how long the transactions remain on the bank's website as well (usually three months, but American Express seems to have an entire year's transactions for download and have been the easiest to work with). 

In any case, there are many answers to this question. So be prepared. If you want this feature, either let your bookkeeper know in advance or be prepared for it to take some weeks to have this set up as the pin in generally mailed to you.

Additionally downloading transactions doesn't always save time. The professional will have to review each and every transaction that goes in regardless of whether they are downloaded or entered manually. And if you're downloading transactions, you're trusting the bank's word on your transaction.  

Something Simple: Pre-made Spreadsheets

I've just run across the most comprehensive list of tracking, budgeting and financial spreadsheets I've seen on the internet. There are both free and more elaborate paid spreadsheets on a myriad topics.

Go see it here.

Where to Start? Or Beginning to get Organized

I've been reading "Getting Things Done" by David Allen. I'm about half done with the book now and wanted to write about it because it's been so useful to me. Many books about organizing seem to require massive investments - of set up time, money, classes, equipment and so on.   In reading just the first half of this book I was able to do two things that matter to me: understand what I was reading and use it.

I picked up three major ideas so far.  The first is that in order to have a organizing system, you have to trust it and use it.  Meaning that you have to consistently put everything in it that you want to capture.  I started using Omni Focus a task management program for Mac.  It's pretty simple - it gives me space to write everything down and add necessary details including when the detail is due and how long it will take and so on.  I'm a list person any way and I tend to keep lists of To Do's so that I don't miss important details.   But it can still happen.  So I knew that I needed a better more comprehensive system.

Now, I'm finding that I add or change my listevery couple of days meaning that I'm actively using the lists that I'm keeping to work from, not just as storage. Just  having a clear place to put everything is extraordinarily useful. I can print my lists (like grocery or errands) and be off easily. I now have a capture system that really works.

The other thing that Allen talks about and that I allude to above is a review system.  He talks about this being a critical piece;  I started reviewing this capture system regularly (he recommends weekly I've been doing it at least twice a week).  That does just as he says it would, it brings me clarity and space to be more creative. I know that I can find what I need when I need it so I let of of carrying so many details and am more able to focus on what's at hand.

It's had other side effects as well.  I can return correspondence faster, and feel more prepared.  It's actually not the "prepared" bit that I'm excited about, it's the ease of, and confidence in, the preparations that I make that I'm enjoying.

The last piece that I've found surprisingly useful is something I tried (unsuccessfully) to help one of my clients do.  She keeps lists of To Do's but feels like she "never gets anything done." Allen recommends doing any piece of the "project list" that will take less than two minutes.  Just do it. That means all of the small things get done: the one line email to confirm a meeting, grabbing the book for the morning meeting, filing this detail, writing the one check for something important. And that create motivation through confidence.

Overall, I find that I'm recommending this book quite a lot, especially to clients who want to get organized but don't know where to start or to people who want to be more organized.  It's very helpful for small business owners who often feel on their own or isolated to have a particularly good system.  If you don't, go check it out.

Its an excellent investment.  And it's deductible!