Hello AdvisHer readers! Lindsay & Danielle here from Kickstart Accounting, Inc. and we could not be more excited to team up with Brittan to bring you this latest blog post. We love what she’s doing to help educate and empower women in the realm of finances and we share in her vision about bringing all things money, finance and business to the forefront of conversations and ensuring that YOU feel more comfortable doing so. Brittan shared with us some questions that she’s been receiving from fellow girl bosses about taxes, business finances and business in general. Let’s break them down:
AdvisHer: Tell us about you – who is Kickstart Accounting?
Kickstart: Kickstart Accounting, Inc. is not your average bookkeeping firm. Our passion is helping entrepreneurs take accounting off their plates so that they can focus on running their businesses. Kickstart helps owners with bookkeeping, understanding financials and making better business decisions to grow their business.
AdvisHer: What was your inspiration for starting your business?
Kickstart: We were both working as CFOs for mid size businesses, while also networking and volunteering in the community. During this time, we saw a real need that was not previously being met for small business owners. Many were going out of business due to poor cash management, inventory issues, tax expenses, bookkeeping and most of all because they did not understand how to read and understand their financial statements. Kickstart Accounting was created to help business owners understand their financials so that they could use that information to make better business decisions and grow their businesses.
AdvisHer: How can an entrepreneur/Girl boss best prepare for tax season?
Kickstart: We have a number of suggestions for preparing for tax season which can make filing your taxes a much more effective and efficient process. Here are a few of our top suggestions:
Get a tax ID number. This is free and recommended for self-employed people. You can give the tax ID number to any customers that require a W-9 form, and a tax ID number is required if you have any employees.
Utilize a financial software like QuickBooks. A financial software can help you categorize and keep track of your business activity – revenues and expenses. And make sure to stay up to date in processing all of the data so that it’s a breeze in compiling financial statements for the end of the year. We see so many people implement QuickBooks and think, ok I’m done now, but that’s really only part of it.
It’s also super important to have different bank accounts for business and personal and to keep them completely separate!
AdvisHer: Which tax forms do entrepreneurs /freelancers/business owners specifically need to file their taxes?
Kickstart: The tax forms needed depend on your type of business structure. For example, if you are a sole proprietor, your business income and expenses should be reported on a Schedule C and will be included in your personal tax return. However, if you are a partnership or a corporation there is a completely separate return that needs to be filed. The IRS links to all of the forms a business may need to file, report and pay taxes on this page: Forms and Instructions – Filing and Paying Business Taxes.
AdvisHer: What tax deductions and/or credits might be available to female entrepreneurs?
Kickstart: Unfortunately there aren’t any deductions or credits available specifically to female entrepreneurs. The deductions and credits will vary depending on what industry the specific business operates within.
AdvisHer: What deadlines should entrepreneurs adhere to for tax preparation and filing?
Kickstart: Some of the most common tax deadlines for entrepreneurs are as follows:
o W2’s and 1099’s are due by January 31st
o Tax returns for Sole Proprietorships and Single-Member LLCs are due by April 15th – the same as your personal return.
o Partnership and S-Corp tax returns are due by March 15th.
o C-Corps Tax returns are also due on April 15th, if their fiscal end-of-year is on December 31st. Otherwise, it is the fifteenth day of the fourth month after the end of its tax year.
Tax deadlines can differ based on your business or operating structure so we recommend reviewing the IRS Tax Calendar for Businesses and Self-Employed. You can use their online calendar and reminders to ensure that you don’t miss any deadlines.
AdvisHer: When should an entrepreneur look to hire an accountant (as opposed to filing or managing on their own)?
Kickstart: We’ve had entrepreneurs contact us after starting their business and at various stages of the business life. Every client is different but we always encourage entrepreneurs to build a community that they trust. If you do not have a financial background and you are unsure of how to do your bookkeeping and you do not understand your financials than get a consultant you trust in place ASAP. The financials of your business are the foundations of your business, know and understand them so that you can build a successful business.
AdvisHer: What are your top tips for those looking to manage their business finances on their own?
Kickstart: In addition to everything we’ve mentioned already, make this a priority. Stay on top of it so that it doesn’t become overwhelming. Block out a dedicated amount of time each week to tackle this task and stick to it!
AdvisHer: What is the number one mistake you see entrepreneurs make?
Kickstart: Many entrepreneurs we see are stuck in planning mode and resist getting started until they feel like they have everything right and set in place. And even once the business owners decide on a plan and course of action, they are reluctant to pivot in their business.
Remember cash is KING! Know your numbers so you know how many products you need to sell or clients you need to serve in order to achieve the goals you have set for yourself. If you have not set goals yet, start NOW! You need to know where you want your business to go and then monitor the progress on a regular basis.
AdvisHer: As business owners yourselves, what advice might you have for those looking to start their own businesses this year?
K: Just do it! If you keep planning and trying to make everything perfect, your business will never launch. Get started, move forward and learn as you go through the process. The key is to learn from BOTH successes and failures, and don’t get paralyzed by preparation.
We would like to thank Lindsay and Danielle of Kickstart Accounting Inc. for their collaboration with this post! For more on Kickstart Accounting Inc., please follow along on Instagram, Twitter, or Facebook.
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