Starting Blocks to Business: Step 3

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First things first

You have an idea brewing in your mind, you have taken your talent and morphed it into the grand enterprise of capitalism. You know you'll be up against lions, tigers and bears oh my! But you're a rhino with tough skin fully prepared for the challenges ahead and whatever comes your way!

Then...the tax technicalities start rolling in, quarterly and annual tax questions, payroll processing,the bookkeeping records, and potential audits. Yikes.

Your idea of being a business owner could be being your own boss, getting paid to do what you love, making people happy, providing a service that fills a void, spreading the word of what you do, whichever it is....you want to expand your services by reaching thousands and possibly millions of customers...instead you may feel weighed down spending valuable time on payroll and bookkeeping. 

Paper work builds up fast with receipts, orders, invoices, and other financial affairs regarding your business. If questions aren't properly answered serious problems could start to rise. You are a chef, contractor, yogi, not necessarily an accountant, even if you are we can save you valuable time.

Paperwork and payroll can weigh down business owners, kudos to everyone who has the enthusiasm to do every part of their business though. Accountants are here to benefit your business saving you time, money, and errors. 

“When someone starts a business, they are extremely good at what they do. If you are a photographer, you do the photographing. Your booking gigs, creating lots of business, making cards, opened a store front, etc. However, managing the money and taxes may not be the focus as to expanding the business.” - David Stamp, General Manager at Puma Accounting

Money is essential and the legal stuff is mundane for most small business owners. Imagine the amount of freed up hours you could have every week by hiring an accountant. You can spend more time with your family, on yourself, or back into your community. 

"However, wouldn't it be nice to spend more time on your craft than trying to manage the payroll, taxes and bookkeeping? We understand each business is unique and our staff is fully trained prepared to do the job and legal work for business owners. Key reminder, the software is only as good as the person entering it."   - David Stamp

Starting a business? Here's a tip!

Starting a business can be one of the most exciting things entrepreneurs do and also one of the most unpredictable. The benefits of being an owner are more substantial than staying in the employee world. Owners create more opportunity for their family, communities, more jobs, and diversity in the free market. It’s exactly what the economy needs.

So, there you are with your business plan, ready to take on your craft to the public. Suddenly, legal questions start popping up.

  • Do I have employees or subcontractors?

  • What’s the difference between the two?

  • What is labor credit?

  • As the owner, should i be on payroll?

These questions shouldn’t be a guessing game in business or put off until last minute. Be prepared. These questions are part of the foundation of your business. David Stamp, office manager at Puma Accounting, has seen the struggles business owners face when dealing with the technical stuff.

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Employees vs Subcontractors

So why is it so important for people to have an accountant? Accountants can make your work and life a lot easier and worry free. They are educated with the most recent tax and employment laws and regulations.

‘What may take an owner a longer period of time we can do in an hour because we are doing it everyday.” The difference between employees and subcontractors are few and here they are..."

Employees

An employee needs to get paid for every hour they work. Getting paid under-the-table only benefits the now. Down the road the consequences of not contributing to social security is not receiving it. Employees have scheduled times to work, purpose and job duties. All tools are owned by the business owner and used by the workers. They are to be on payroll.

Subcontractors

Subcontractors make their own schedule and use their own equipment. They may be representing the company and/or business. They could use the business equipment as renters.

Why Under the Table is an Understatement

When it comes to getting paid, being on the books isn't just legal, its smart. Why? Paying employees helps with two things in business: federal and state tax. Paying into social security during your working years is important so you can collect it when you retire. 

The Puma Accounting has been in business for 40 years. They take the time to answer all our clients questions 6 days a week, 52 weeks a year. The team is certified by the IRS and experienced. They understand every business is different.  Any business owner striving to make their business more productive spending time doing their craft, let our team help you with the paper work in payroll, bookkeeping and sales tax. Its what they do best.

If you have a tax situation that you would like to discuss, please contact or call us today!

Tags: [business startup], [paycheck processing]. [payroll], [professional], [business], [accounting], [small business], [under the table]