Essential Accounting Steps to Cover for New Business Formation

If you have recently launched or about to launch an online store, rest assured that it takes passion and perseverance to reach where you are at present. However, business ownership has been a continuous stream of expanding to-do lists and satisfying milestones. Along with the launch, you would require holding your accounting tasks that is an integral part of owning a store or business. 

Find below a list of new business formation Athens GA accounting steps to ensure that you gain the confidence of covering every base. It would also ensure that you are ready to move towards the next in line on your to-do list. 

Step One – Opening a bank account 

Before opening an account, consider shopping around for business accounts. It would be essential to compare the fee structures of different banks. Pay attention to what you would owe, as most business checking accounts charge a higher fee for personal banking. Check with the specific bank about the documents you need for the appointment. 

Step Two – Tracking your expenses 

It is imperative to establish a system for organizing receipts along with other important records. The five important receipts to look out for are 

  • Business travel out of town 
  • Entertainment and meals 
  • Receipts for buying gifts 
  • Expenses related to vehicles 
  • Home office receipts 

Step Three – Developing a bookkeeping system 

It is an essential routine process of categorizing transactions, recording them, and reconciling bank statements. You could manage your books through the following methods 

  • Using software or DIY method 
  • Outsourcing to a part-time bookkeeper 
  • Hiring an in-house bookkeeper 

Step Four – Setting a payroll system 

For employees, consider setting up a payroll schedule. It would ensure that you are withholding the taxes correctly. Several services claim to offer such assistance and most accounting software would offer payroll as a feature. 

Step Five – How do you wish to be paid? 

You could use Shopify payments to accept credit card payments for a North American Store. Without using Shopify payments if you wish to accept credit card payments, consider using s third-party payment processor. 

Step Six – Determining your tax obligations 

Tax obligations would vary largely on the legal structure of the business. A self-employed person could claim business income on the personal tax return. However, corporations are taxed independently from owners. The income from the corporation would be taxed as an employee. Morrison Consultants offer tax advisory services for all businesses to help you determine your obligations and ensure compliance with regulatory requirements.

Starting a business is an overwhelming process. However, following the list would keep your new business formation accounting in order from the beginning. 

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