Sunday, November 30, 2014

One of the main concerns for small business owners is how they are going to get paid. There are certain rules that have to be followed depending on how your company is set up.. So let's break it down.

If you are a LLC or a sole proprietor the IRS  says you cannot pay yourself through payroll. However, if you’re a S corporation or C corporation you should pay yourself through payroll. If  LLC's and sole perpetrators can't pay themselves through payroll, what can you do? You should set up a payment schedule and write checks to a draw account. By cutting yourself a check, it will allow you to pay yourself the proper way.

According to Entrepreneur there are two main ways to figure out how much to pay yourself. You can either pay yourself as much as your worth or just enough to get by. Either way you should consult with your tax professional.

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Tuesday, November 4, 2014

Technology - Friend or Foe?

I see small businesses in South Jersey that waste so much of their hard earned money on banking the old fashioned way. For one of my clients, it costs a total of $75  a month  for stamps, envelopes, and checks in order to pay employees and vendors. While this may not seem like a big number to many, it quickly adds up. Besides wasting money on paper products, doing banking online is much more time efficient. We are all busy and taking the time to type things out or run to the bank, even put things in the mailbox takes up precious time.

With technology quickly advancing, some of my clients are still apprehensive about banking online. Even though it can be scary, it can provide a  business with a lot of time and cost cutting opportunities. Security is the first step, in my opinion, to make sure that you are doing your online banking correctly.  US News and World Report reminds us that changing passwords and protecting your information is key. Change your password often and make sure it is unique. Also avoid clicking through links in  emails. Within emails, there could be phishing messages that could try and steal your information.

 Overall I understand taking this step of going online can be scary and cause apprehension, but trust me, in the long run, both you and your small business will be thankful for all the time and money you save.
For a complimentary initial consultation give Janine's Bookkeeping LLC a call at 609-910-2300

At Janine's Bookkeeping LLC,  we make your success our business.