How To Start a Business in Texas – Keeping Your Business Administratively Healthy – Part 4 2017-10-04T12:03:32+00:00

From the Desk of Your Virtual CFO

Topic: Keeping Your Business Administratively Healthy – Action List – Texas

How To Start a Business in Texas – Keeping Your Business Administratively Healthy – Part 4

1. Prepare your FS

Have Accountant prepare your financial statements monthly. They can also make sure that all accounts are reconciled. If the business is extremely small and your cash position is extremely healthy, then this can be done less often, such as quarterly, but you can manage your business best with the most up-to- date information possible. So don’t scrimp on getting good information.

2. Review your FS

Meet with Accountant to review your Financial Statements. This can be done in person or virtually. The Accountant will explain the statements and point out noteworthy information to help you financially manage your business. Have these meetings every month until you are able to understand and interpret the Financial Statements on your own. The Financial Statements track your progress toward your business vision so you can tell if you are on the right path to success. This information is vital!

3. Tax Planning and Business Check-up

Have your Accountant advise you, at least annually during the fourth quarter of the year, on tax planning ideas and estimated taxes. This is also a good time to have your Accountant review your FS with you and you can ask questions about any business changes you are planning. Note that if your income varies a lot you may want your Accountant to calculate your quarterly estimated tax payment throughout the year every time a payment is due. Do not get behind on paying tax! It is very difficult to catch back up. See your Accountant regarding tax or business decisions as often as needed throughout the year.

4. Company Meetings

If you have additional partners, shareholders or officers, conduct business meetings regularly as required by your corporate documents and/or to promote communication and coordination of efforts throughout your business.

5. TAX FILINGS and payments to be handled by Bookkeeper and Payroll Company:

a. Payroll tax – IRS- FIT/ FICA, FUTA, TWC-Unemployment, SSA-W2/W3
b. Sales tax – state, city, other
c. Annual issuance of 1099’s, 1096
d. Business personal property tax – county
e. Property tax – county

6. TAX FILINGS to be handled by CPA:

a. Annual income tax return – IRS
b. Annual TX Franchise tax – TX Comptroller
c. Quarterly or Annual federal income tax estimates

7. Double check

Make sure your Bookkeeper is accurately and regularly taking care of your invoicing, bill paying, payroll, and sales tax filings. Your invoicing is your income so they must be able to stay on top of it. The IRS will come after you for not paying payroll taxes so be absolutely sure that is done.

8. If your business is more complicated than this then there are more action steps.

9. Don’t be afraid to ask your professional for guidance.

A good professional more than pays for the cost of their guidance through the value of their services to you and your business.

10. Enjoy! – Congratulations!

We hope to watch your business grow and flourish as we grow with you!