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Assessing Your Record Keeping Practices - Shared screen with speaker view
Katie Johnson
If I want to pay myself, and possibly others in the future, should I be an LLC instead of a sole prop? My mistake, I hit the wrong button. I copied this question from the Q&A and will answer here: For payroll purposes and protection of my assets? I have no idea if that matters. Thank you!
Katie Johnson
Answer: Your entity choice is super important. Whether you chose an LLC, B-Corp, etc- a legal entity will make it easier for you to keep your finances separate and provide a liability shield
Katie Johnson
A Sole Prop doesn't provide that
Katie Johnson
If anyone needs help forming an entity, or has questions please email me for assistance :)
Annie Heisey
I'm sorry, but I'm still confused about the double-entry bookkeeping... is it just debit or credit for every category? so "crediting" an expense just means we will owe that?
Katie Johnson
That's correct. A debit is something like a bill, and a credit is payment- for every category.
Katie Johnson
crediting an expense means paying it
Annie Heisey
I think maybe I have debit and credit confused. debit is a minus and credit is a plus?
Katie Johnson
Thank you Kate
Katie Johnson
Annie- I keep hitting the "answer live" button on the Q&A- So sorry. I'm copy and pasting your great question here to answer it
Katie Johnson
Question--Is it possible to consult an accountant after you do your taxes for a review? I'm not sure I'm ready to have a full-time accountant, but I feel like a meeting with someone to go over accounting and get a review would be really helpful. Is that a thing?
Katie Johnson
Answer: Yes. I would also like to say that you don't need to have a full time accountant to have an accountant. You can have a relationship that fits your needs- once or twice a year, once a month, etc. There's lots of ways to work with a CPA
Katie Johnson
That's the next webinar!!
Annie Heisey
Great, thank you! One more question for you.... If I have vendors and clients pay me electronically, do I need to have a separate PayPal account for business for instance? I;m assuming yes but thought I would ask
Katie Johnson
Yes, it will make things a lot easier, it's professional and will help with the bookkeeping!
Annie Heisey
Does a budget plan for percentage of revenue to be used for expenses? For instance, if I need to spend for a specific order, it won't be the same every month
Kate Marchand
Kate Marchand
thanks that helps - just wanted to make sure I was understanding that correctly
Kirsten Lowe-Rebel
I appreciate your enthusiasm, this has been great and very thought provoking!!! Thank you Jason!
Katie Johnson
Thanks Kirsten :)
Katie Johnson
Thanks Edie!
Lindsay Schmittle
Thank you!