As we head into tax season I thought I would publish the notes from Ogden Lilly‘s Visit in July 2007

Quickbooks is a great way to get started when setting up your company

  • as the business grows, most people move up the Intuit product line
  • it is very user friendly and looks like real accounting documents
  • it tracks and records all the necessary financial statements
  • it does payroll, both full and partial
  • the software costs between $250 – $3,000
  • the Apple version is about 4-5 releases behind

Quicken doesn’t support a balance sheet approach: it is really for individuals not companies.

Ogden’s firm: Boitano, Sargent & Lilly, LLP http://www.bslcpa.com/

  • Is ranked number three in the bay area in tax preparation by the San Jose Business Journal
  • The firm helps business owners become more independent in managing their finances
  • Most client engagements begin with an initial setup and we show them how to design their own standard reports.
  • It usually takes two hours a month to manage. So our clients only contact us with support needs.

Common Accounting Mistakes

  • not watching the balance sheet
  • trying to write off certain items as an expense
  • not watching the transactions of the bank statement: if you are the owner then you need to check this, do not let anyone else be responsible

Incorporation Facts.

  • If you file as an CA Corp you will spend a minimum of 800 dollars a year just for being in business
  • There is a special California tax on LLC’s that is based on gross sales (note that sub-S and C corp are taxed on profit).

Three additional blog posts on CA LLC vs. CA Sub-S