Accountant – The process of summarizing, interpreting, and communicating financial transactions. *More than likely does tax preparation.
Bookkeeper – Identifying, measuring, and recording financial transactions
Owner’s Pay – the compensation received for doing the work your business does to generate
the revenue. The skills, expertise, and hours put into your products/services to clients.
This is the working “in” your business.
Profit – the reward for running a successful business. It’s for being the brains behind the
business and for taking the risk. The ideas, the strategy, the setup, the systems, the processes,
and the training.
This is the working “on” your business.
3 to 7 Years(recommended)
Receipts
Bank and credit card statements
Past tax returns
Miscellaneous financial records (supporting documents)
Payroll records (if applicable)
A financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time. The balance sheet helps answer questions such as whether the company has a positive net worth, whether it has enough cash and short – term assets to cover its financial obligations. Basically, tells a creditor or investor what a business owns and who they owe.
Have an emergency fund; expect the expenses – and save for them; eliminate debt; live below your means
| What You Offer | Independent Contractor | Employee |
|---|---|---|
| Benefits | No | Yes |
| Overtime | No | Yes |
| Unemployment | No | Yes |
| Business expense reimbursement | No | Yes |
| Company trainings | No | Yes |
| Own equipment used | No | Yes |
| Salary/hourly | No | Yes |
| Defined length of employment | Yes | No |
| Exclusive employment | No | Yes |
a. Ask yourself if location matters
b. Know what you need
c. Look for small business experience
d. Do they have expertise in areas relevant to you?
e. Communication style
f. Ask for recommendations