In this video, I review how to do a painting estimate using Quickbooks Online Plus. To include how to set up your custom forms, a technique to include your markup, and how to copy data to an invoice.
Do you have the insight into your painting business to make targeted improvements to make more money? With the right insight into your business, you can almost instantly improve your financial position.
One of one most powerful planning tools your bookkeeper can help you with is a budget.
If you are not getting and reviewing a budget with your bookkeeper, it’s time for a conversation (or a new bookkeeper).
According to a Washington Times Article from late last year, a bookkeeper pleaded guilty to stealing $200,000 from a painting business owner from Buffalo, New York. Officials say he forged checks and did unauthorized bank transfers to himself over a 1 year period.
How can you prevent this from happening in your painting business?
To ensure your painting business is set up to allow you to gain insight into your financials and is easily accessible on-the-go, use Quickbooks Online Plus and follow the steps in this video to get started.
"TAKING AN EXTENSION TO FILE TAXES IS AN EXTENSION TO PAY TAXES ALSO."
An extension to file taxes is simply that. You still must pay the amount you owe by April 15th to avoid penalties and interest...
The IRS has specific rules on how to treat payments made to certain types of workers. These rules are crucial to understand; in recent years, the IRS has been cracking down on employers who do not follow these rules. Before your painting business pays a worker, first examine the type of relationship that exists between you and the worker. The worker performing the services can be classified as one of the following:
Is your painting business leaving money on the table? Probably. Many painting companies fail to take advantage of some IRS business tax credits available to them. Many painting companies qualify for the small employer health insurance premium tax credit, small employer pension plan startup cost tax credit, and the work opportunity tax credit.
For the current tax year (2016), the PATH Act and Section 179 deductions are still in effect; possibly not for long. For you, as a paint business owner, this means you can purchase a vehicle for your paint business and fully deduct the cost on your taxes, thereby savings thousands of dollars on the purchase of a work vehicle. There are a few guidelines you must follow in order to take the full deduction in the year of purchase.
Setting up your business correctly will save you legal and tax problems down the road. Here’s a step-by-step to get your paint business off the ground.
Step 1: Determine business type.
Starting out, filing your business as an limited liability company (LLC) will most likely be best. An LLC provides liability shelter for small business owners.
Filing as an LLC can be done with your secretary of state. Just google “[your state] secretary of state”. Most states give you the option to file online and charge around $150.
Down the line, if your business earns profits above $75,000 or so, consult a tax accountant on whether you should incorporate as an S Corporation to save money.