1 thing EVERY newbie needs to do RIGHT NOW...

It would be great if we could some recommendations on which software programs people are using or ones to try out. I know I will need to start looking into accounting software next year and not sure what to go with other than quickbooks.
 
I am new here but I have had extensive experience with LLC's and accounting practices. LLC's are easy to use compared to S & C corps give you good protection and are pretty straight forward to maintain with the Gov't. At my height I was doing $1,000,000 per month in revenues through a group of LLC brick and motor businesses so they can also handle most of your growth needs. We were able to use Quickbooks for Business for all of our mandatory recording needs and only used Accountants to do year end Tax returns and Tax planning. Very cost effective. If you go that route you should find an accountant or firm that accepts Quickbooks information which makes things much easier.
 
My recommendation: get offshore as soon as you can.

The longer you wait, the more complicated it gets and the more you get on the tax mans radar. I would say that by the time you hit $50k/yr you should be off. Also, get the hell out of your home country if you can. It all becomes easier.
 
Great thread. I would argue that the actual task of bookkeeping is rather easy (but needs consistency), where the added value of the accountant / professional bookkeeper lies is in the understanding of regulation which at least in my country often changes and you need to be on top of things to know all about deductions, tax exempts, etc. In terms of "tax optimizing " by incorporating overseas you definitely should know what you're doing because governments are (will be) extra curious about the money not going in their pockets. And you should have a significant and steady stream of income wort the hassle, extra costs and risks.
 
I second the idea of getting a quality accountant - they are worth their weight in gold, especially if you get a "friendly" accountant!
 
Yeah, I agree and realize that what I'm about to say might be a bit controversial. But I would say put it off for as long as you can (meaning hiding profits) when you are fresh. You need to learn since the beginning how to "play the game". Because no matter how good we want to be they are always after our money. Once the operation is just too risky, register and make all you can to minimize your turnover and grow expenses to optimize best tax deduction. Theoretically one thing... practically not necessary. Of course, all by the law (keeping in mind that what is not forbidden by the law it's legal... That's shaky ground by the way...). And the best thing OP have said, get a good accountant who knows how to "play the game" even if it means paying him more. It will get back to you shortly with advance. There is a reason Google is paying taxes the way they doing it...
 
Keeping private accurate records is key.
Knowing your general expenses day to day, month to month, year to year are a big part of putting a winning formula together. Time management is possibly even more important than the expenses.
If you get down the wrong rabbit hole, when you come up in a few days, weeks, months, whatever to find limited payoff for effort invested. That sucks. Be honest with yourself about tasks and the time they require.

Taxes? Accountants? Fuck them right?
Well over the years it seems keeping your methodology consistent is the most important thing not to raise red flags involving audits (IRS) and the like. Always cover the basics. I like to manage all my books with a comprehensive home grown database to get super granular on what I am doing and why. Then I consolidate to the basics to fill in as few slots as possible on the returns. Not cheating, just simplifying. As long as you never blatantly try to pull a fast one, there is some level of forgiveness. Errors vs. Fraud. That's why you never change it up.

** Remember that Accountants have NO OBLIGATION to protect your privacy or confidence.
If cranking and need to ask “iffy” questions and/or you are pushing things to the edge- befriend a TAX ATTORNEY who must keep your business dealing confidential under oath. Accountants pretty much work for the government. If taxes got simplified or a flat tax was implemented they would be working for Google.

Good Luck!

Set Goals! Solid, razor sharp Goals!
 
RomesFall said:
My advice is to keep a running log on Excel as well and update it every month, then file the paper side away and when it comes to tax time you can just cross reference the two along with a big old bank statement.
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This. Excel is an awesome tool if you know your way around it. Every tool I have used so far isn't able to deal with the multiple currencies and VAT shenanigans that comes with selling products worldwide. Especially if you are not a US based company. As a bonus you can tie in your time management Excel sheet to more easily see which projects are worth it and which projects should be discarded.
 
I guess spend a bit on an accountant is better than getting off with badass tax stalkers lol like me !
 
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Excel is credit to team!

++ for Excel. That program is the minigun wielding heavy to my maniac scientist shenanigans.

I still use an accountant (because fuck Swiss tax laws), but his work is much easier as I have everything in place,

::emp::
 
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EvolutionVision said:
My recommendation: get offshore as soon as you can.

The longer you wait, the more complicated it gets and the more you get on the tax mans radar. I would say that by the time you hit $50k/yr you should be off. Also, get the hell out of your home country if you can. It all becomes easier.
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I'm starting a new company within the next two months and I've always wanted to take things offshore. I'm in the UK now, can you recommend where to incorporate? It would be so good to learn how to take your biz offshore from someone who's done it already. Any advice much appreciated!
 
Wave is nice for accounting. If you're in the US there is no reason to not set up an LLC. In most states, it's stupid easy, and that way you can keep your personal and private assets separated.
 
I've been filling out my profit and expenses by hand in a Simplified Weekly Bookkeeping Record for all of 2014. It looks like this:

dome-publishing-simple-weekly-monthly-accounting-book-128-sheets-pic1.jpg


Before that, I was waiting until April of the year after to hunt around for shit and figure out what I owe before rushing it to my CPA to actually file the paperwork and check over my numbers.

I can tell you, doing this by hand and committing to it every week has been a blessing. Not only do I find out when I start having "too much" income that needs to be "deducted" as soon as I can, but I no longer realize I have to write out a massive tax check to the government in April because I didn't file for many deductions before December ended.

I can spot quickly that I might be making $30k too much in the year and I really do need to book that last minute trip to NYC for ASE 2014, Leads Con, or Ad Tech in London because I need some "training" and networking.

I plan on switching over to software like Wave or a service like Bench.co for 2015 though.
 
Wave looks like it was actually made with people like us in mind, I'll have to give it a try... Looks a lot more intuitive than Quickbooks Online, plus with QBO I need an extra saas for $20/mo just to get paypal integration working properly.
 
This is what I need to work on the most, I know I am allowing a huge mess to pile up.
 
+1 for Wave, it's definitely very easy, basically like a Mint.com but for business.

Also I have heard good things about http://bench.co which is bookkeeping as a service but haven't used it personally yet, will likely do so for tax year 2015 though so I'll report back. It's pricey but probably worth it if you're making sizable income.
 
Just doing taxes at the moment.

I love being organized.
Still a headache, but not THAT much.

Alphabetized physical folders, checklist provided by accountant, Excel for my biz stuff.

::emp::
 
Good post. Smart move. I didn't set up my Amazon taxes properly, and for every sale I made in California, I lost money because of taxes =(((
 
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