Most cities require businesses to have a city business license. Think of it as a license to drive your business within city boundaries. If you drive your business into other cities, you will need a separate license for each. You pick up most license applications at the city’s Planning and Zoning Department.

The main purpose is to regulate what types of businesses are represented in the city. Most cities do not want strip clubs in a residential area. One purpose of such license is to identify who is in the city extracting money from its residents, just in case some business does not follow-through with its promise. For example, if a photographer takes a large deposit from a wedding client and fails to perform or even show up, the client can file a criminal complaint with the city, who will send out police investigators to track the photographer down based on the information on the license application.

There are several other licenses businesses most obtain to be legitimate: State Employment ID numbers, State, County, and City Sales Tax numbers, Federal License numbers, State Regulatory numbers, County Health Permits, etc. A one-hour discussion with your attorney or accountant can identify which license you may need to obtain. Hiring them to obtain a Federal ID Number does not license you for everything.

Joseph M. Tames has been a Certified QuickBooks ProAdvisor since 1999. Joe travels throughout the United States installing, setting up, training, and troubleshooting QuickBooks software and solving accounting and tax-related issues. In his spare time, Joe attempts to solve the photographic properties of exposure and composition. You can reach Joe by phone at 866-293-5974 or by email at josephtames@gmail.com.

Most people believe they can setup their Sole Proprietorship or LLC by themselves; install, setup and implement their QuickBooks program by themselves; properly account for all monies in and out by themselves; and transfer such business information to the proper tax forms to accurately reflect, “under the penalties of perjury”, their individual tax liability.

If you can do all of these, you do not need an accountant. If you need help with any of these, you might need an accountant.

The question then becomes not if you need one; the question is how often.

Businesses that gross over $1M need an accountant full-time. Businesses that have payroll or complicated sales tax returns need an accountant at least once a month. Most small businesses need an accountant on a quarterly-basis just for checkups. Some savvy business owners just want accountants to do the annual taxes; or to setup their business, teach them a few things, be available for phone calls.

You need to determine when you need an accountant. A no-cost phone call to an accountant familiar with your business can give you options.

Joseph M. Tames has been a Certified QuickBooks ProAdvisor since 1999. Joe travels throughout the United States installing, setting up, training, and troubleshooting QuickBooks software and solving accounting and tax-related issues. In his spare time, Joe attempts to solve the photographic properties of exposure and composition. You can reach Joe by phone at 866-293-5974 or by email at josephtames@gmail.com.

Internal Revenue Service guidelines strictly prohibit deducting the value of services rendered. Why is this? Because while everyone’s time is valuable, there is no standard in determining what that time is worth.

The workaround would be to invoice the non-profit for your services. The non-profit pays your invoice and you immediately countersign the check and return to the non-profit as a donation. Further proof of the donation is a letter from the non-profit thanking you for your donation.

For example, Non-Profit wants Joe Accountant to prepare its annual taxes, but has no money to pay for such services. Joe Accountant agrees to prepare such taxes, but will invoice for the service. Non-Profit agrees to pay the invoice, but expects Joe Accountant to countersign the check as a donation (remember the scene from Ghost). Joe Accountant receives a letter of donation from Non-Profit. Non-Profit deposits countersigned check into its bank account. The effect: The bank will credit the deposit first and clear the same check as a debit.

Non-Profit paid for services rendered; Joe Accountant received payment for services rendered. Joe Accountant has a verifiable donation letter; Non-Profit has a cash donation. This creates an audit-proof paper trail.

Joseph M. Tames has been a Certified QuickBooks ProAdvisor since 1999. Joe travels throughout the United States installing, setting up, training, and troubleshooting QuickBooks software and solving accounting and tax-related issues. In his spare time, Joe attempts to solve the photographic properties of exposure and composition. You can reach Joe by phone at 866-293-5974 or by email at josephtames@gmail.com.

Joe will be posting an article very soon, so stay tuned!