Whether you’re operating a food truck or running a white tablecloth establishment looking for its first Michelin star, chances are that business accounting is not among your favorite tasks.
To emphasize the importance of good accounting practices, a survey by restaurantowner.com found
Fortunately, there’s software for that. In fact, there’s quite a bit of accounting software available, but sooner or later, most businesspeople try QuickBooks.
One of the primary advantages of QuickBooks is its ubiquitous nature. Because so many businesses use it, there’s a lot of information available, including Sheltra’s own training package and a thriving online community.
Of course, the caveat is that the attempt to appeal to all businesses means that it’s not perfectly suited to some of the specific accounting and information needs of the food service industry.
The four areas you will want to focus on are:
As with most software, time spent learning and implementing the program will be rewarded with accuracy and ease of use afterward. Sheltra Tax & Accounting, LLC specializes in Restaurant accounting as well as other specialized industries. Sheltra can train your office manager or bookkeeper or handle all of the accounting functions for you.
Last, but not least, your year-end tax sessions with your preparer will be much less stressful when all you have to do is present a file.
For more information on business accounting or tax preparation for your restaurant, contact Sheltra Tax & Accounting, LLC at (802) 878-0990.
But, it’s urgent that you act NOW, and here’s why…
➔ The grant fund is limited and is almost out of money! Once the money is gone, it will be gone until July 2017. And…
➔ The FREE QuickBooks Software Bonus ends on 12/31!
Credit may be the lifeblood of small business, but it’s particularly vulnerable to toxins. And once you’re infected, those credit scores bring a triple-whammy of higher interest rates for loans or a possible loan denial, potential increases in insurance costs, and difficulty in securing favorable terms with suppliers. Vermont accounting firm at Sheltra Tax & Accounting, LLC explain the differences between personal credit and business credit and how to improve them.
Business credit is more difficult to get a handle on than personal credit. More companies provide business credit reports, and getting those reports isn’t free. Also, correcting bad information on your credit report is more difficult because it requires contacting the reporting agency and working through the problem with them.
Another difference between business and personal credit is that anyone can take a look at your business rating. That means vendors and suppliers are using those numbers when they’re considering transactions with your company.
But there are some simple steps you can take to allow your startup or ongoing business to create a stellar rating.
First, build a good business base.
That means doing the things that will make people take your company seriously. First of all, create a workable business plan. Lenders and vendors will want to see your goals and how you intend to get there. Then, incorporate your business and set up a business address, even if you’re operating a home-based business.
Next, create a company website. This is where people are going to go first when they want to evaluate you. Finally, establish a company credit card. This will keep your business transactions separate from your personal finances and allows you establish a solid record of payments.
Second, pay your bills on time and early if you can manage it. Some credit reporting companies will give you a boost for paying invoices more than 30 days early.
Third, try to use lenders and suppliers who report to credit bureaus. Not all of them will, so make sure that’s one of the questions you ask before you enter into a business relationship. The most sparkling payment performance doesn’t do you any good if no one can find it.
Fourth, keep your information current with all the credit reporting firms. Perform an annual review of your information with at least the major firms to make sure that all the information is correct and up to date. There’s no one better than you to spot outdated or incorrect reports.
Finally, keep your debt ratio low. A company with credit that’s nearly maxed out will raise a red flag. Keep your business expenses lean and periodically request increases in your line of credit to keep those numbers looking good.
An additional challenge in establishing and improving your business credit is that the three major agencies all have different methods of calculating your score.
Equifax, for example, relies primarily on bank loan and credit card data reports. Dun and Bradstreet’s Paydex relies on reports from your vendors and suppliers. And Experian combines both. And those are just the top three in a crowded field of credit reporters.
It’s not easy, but understanding and maintaining your business credit rating is critical to keeping your business vital and healthy.
For more information:
Understanding your credit report
For more information on improving your credit or to schedule an appointment with an enrolled agent, contact Sheltra Tax & Accounting, LLC at (802) 878-0990 today.
You foster strong relationships with your customers through exceptional service and value. But a thank-you gift never hurts. In addition to the goodwill you earn as a gift-giver, you also earn a small tax deduction from the IRS.
A very small tax deduction, which is limited to a maximum of $25 for each client. The amount may seem miserly but it was generous when it was set more than 50 years ago. Here are a few things you should know about the tax benefits of your gifts:
Some items fall into a hazy area between gift and entertainment, such as concert, theater or sporting event tickets. If you give these items to a client, they are subject to the $25 limit. However, if you attend the event with the client, the tickets become an entertainment expense, and 50 percent of the face value is deductible.
For example, if you give a client two $15 theater tickets, it could be a $25 gift expense or a $15 entertainment expense. If the two tickets cost $200, you get the $25 deduction if you don’t attend, and a $100 deduction if you do.
Check out the full IRS chapter on the gift deduction.
A key reason that business owners and managers choose to form a corporation or a limited liability company (LLC) is so that they won’t be held personally liable for debts should the business be unable to pay its creditors. But sometimes courts will hold an LLC or corporation’s owners, members, and shareholders personally liable for business debts. When this happens it’s called “piercing the corporate veil.”
When my clients meet with me the first order of business is to explain the importance of keeping your personal and business transactions separate. As a corporation, you hold yourself separate from your business. In a corporation you are an employee, in an LLC you are a member. I also recommend that you consult with a business lawyer to set up your corporation and discuss your legal responsibilities.
Circumstances that can pierce the corporate veil:
If you are sued personally for the debts of your business (a lawsuit names you and your business as defendants, or a creditor threatens to name you personally in a lawsuit), you may need the help of a business attorney to defend yourself.