Contact Our Team At: [email protected] Phone: 406-926-1057

Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!

Learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.

​—Don’t take our word for it—listen to our clients share about their accounting success!

So you’re thinking about starting a business. Congratulations! For decades now Montana has been a leader in the states that have the most entrepreneurs. It takes creativity, hard work and careful planning to launch a successful business. 

Mill Creek Accounting Services is a small business for small businesses. I, myself, am a small business owner. I know what it takes to be a one-man shop: taking care of paperwork, handling communications, being the director of marketing, managing the books—and in my case—managing other peoples’ books, too! I often wish there were just a few more hours in a day so I could finish up just a few more tasks. 

As Mill Creek Accounting continues to grow, we have heard similar themes from our clients—many of which are entrepreneurs just like you. “I didn’t think I could afford an accountant as a startup!”  “I wish I would have started working with you before I opened my business!“ I’m so glad you do these things for me so I can focus on my work!”​

Let’s take a moment to examine those comments… 

​1. “I didn’t think I could afford an accountant as a startup!”​

​Monthly bookkeeping and accounting services for entrepreneurs and startups are far more affordable than you may think. Many of my clients are entrepreneurs and startups—just like you. I offer a complimentary consultation so that we can assess your needs and find the right fit for your business entity. I invite you to contact me to schedule your free consultation. (Contact info is at the bottom of this blog.)

Taxes. Oh my. Taxes can either be a walk in the park on a sunny day—or walk through Central Park late at night. If you’ve been working with an accountant and he’s been balancing your books every month—then during tax season you’ll be prepared to maximize your return. Or, if you’ve been too busy to devote enough time to accounting, you might be scrambling to round up receipts and track down invoices. You’re at risk of enduring unnecessary stress and paying more taxes than are required. If you work with an accountant from the beginning—you’ll be able to keep track of all your business expenses and income so that you can make wise decisions with your money. If you’re scrambling at the end of the year you won’t be poised to make the best financial decisions when you meet with your CPA, which means you could pay a lot more in taxes than necessary. 

What I’ve found is that most people don’t have a tax problem—they have a bookkeeping problem. Bookkeeping is an ongoing, monthly process that sets you up for a sunny walk in the park come tax season. ​

2. “I wish I would have started working with you before I opened my business!”​

Studies on business failure show that poor financial planning is a leading reason that businesses do not succeed. There are so many critical decisions to make before you even open your doors to the public.

For example, what kind of business will you be? An accountant will help you decide what type of business entity is right for you. Perhaps you should be an LLC? An S-Corp? This key decision will impact many areas of your business and will affect your profit and taxes. And, if the paperwork is filed incorrectly with the state you’ll be penalized with a refiling fee and a delay in opening your business.

Working with an accountant from the very beginning also means you’ll get a bookkeeping and accounting system designed specially for the needs of your business. Your business will have unique invoicing requirements and you will have personal preferences for how you want to operate your finances. You’ll need an accounting system that is capable of invoicing, accounts receivable, performing financial transactions and more. Does your bookkeeping system interface with your bank accounts? This is a crucial step for balancing your books. As a new business owner, you’re going to be busy all the time. This means it is vital to have an accounting system that is specifically set up for your needs from the beginning. Plus, as your accountant—I’ll show you the tricks to using complex accounting  software so that you can navigate your computer programs with ease. 

​3. “I’m so glad you do these things for me so I can focus on my work!”​

As a new business owner you’re going to be really, really busy. Time that is spent balancing your books is time you could’ve spent prospecting new business and fulfilling orders. 

Time spent managing your money is time you could’ve spent earning money. 

Accounting can be confusing. If you’re not familiar with how to choose what kind of business entity to become, how to setup an accounting system and how to manage your books, then you risk spending more time learning how to run your business—than actually running your business. This is a common mistake, and one that you don’t have to endure. 

To make matters worse, accounting laws and regulations are updated all the time. These new laws and regulations might save you money, or they might penalize you. But, since you’ve been working with an accountant since before you opened your business—you’ll have someone on your side who keeps up on important accounting matters. 

My clients and I build long-term relationships. This means that you have an advocate who is familiar with the ins and outs of your business. You’ll be focusing on your business, your accountant will be focusing on your books. On a day-to-day basis this will free up your time. And, if the going ever gets rough, it means you have a trained professional to help you during difficult times. 

If you’re considering starting a business, or if you have started a business then I invite you to schedule a complimentary consultation with me. We can discuss your business and I’ll share with you how my accounting services can help you run a profitable company.

Accounting can be confusing. Understanding basic accounting terms—and their commonly referred to acronyms—will help you navigate your business finances. In my line of work it’s important to understand the language that accompanies the numbers. This handy resource guide can help! Print this reference guide off and use it to help decode the accounting acronyms you might encounter!
 
                                       Basic Accounting Terms List

Accounts Receivable – AR
Definition: The amount of money owed by your customers after goods or services have been delivered and/or used. 

Accounting – ACCG
Definition: A systematic way of recording and reporting financial transactions.

Accounts Payable – AP
Definition: The amount of money you owe creditors (suppliers, etc.) in return for good and/or services they have delivered.  See how it works here.

Assets (Fixed and Current) – FA and CA
Definition: Current assets are those that will be used within one year. Typically this could be cash, inventory or accounts receivable. Fixed assets (non current) are more long-term and will likely provide benefits to a company for more than one year, such as a building, land or machinery. 

Balance Sheet – BS
Definition: A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner’s equity at a given time.

Capital – CAP
Definition: A financial asset and its value, such as cash or goods. Working capital is calculated by taking your current assets subtracted from current liabilities.

Cash Flow – CF
Definition: The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time. Having a positive cash flow is essential in order for businesses to survive in the long run.

Certified Public Accountant – CPA
Definition: A designation given to someone who has passed a standardized CPA exam and met government-mandated work experience and educational requirements to become a CPA.

Cost of Goods Sold – COGS
Definition: The direct expense related to producing the goods sold by a company. This may include the cost of the raw materials (parts) and amount of employee labor used in production.

Credit – CR
Definition: An accounting entry that may either decrease assets or increase liabilities and equity on the company's balance sheet, depending on the transaction. When using the double-entry accounting method there will be two recorded entries for every transaction: a credit and a debit.

Credit Card—CC
Definition: A small plastic card issued by a bank or business that allows the cardholder to purchase items on credit. Oftentimes, there is also an interest rate, and interest accrual terms, that the cardholder will pay.

Debit – DR
Definition: An accounting entry where there is either an increase in assets or a decrease in liabilities on a company's balance sheet.

Expenses (Fixed, Variable, Accrued, Operation) – FE, VE, AE, OE
Definition: The fixed, variable, accrued or day-to-day costs that a business may incur through its operations. Examples of expenses include payments to banks, suppliers, employees or equipment.

Generally Accepted Accounting Principles – GAAP
Definition: A set of rules and guidelines developed by the accounting industry for companies to follow when reporting financial data. Following these rules is especially critical for all publicly traded companies.

General Ledger – GL
Definition: A complete record of the financial transactions over the life of a company.

Liabilities (Current and Long-Term) – CL and LTL
Definition: A company's debts or financial obligations it incurred during business operations. Current liabilities are those debts that are payable within a year, such as a debt to suppliers. Long-term liabilities are typically payable over a period of time greater than one year. An example of a long-term liability would be a bank loan.

Line of Credit—LOC
Definition: An amount of credit extended to a borrower.

Net Income – NI
Definition: A company's total earnings, also called net profit or the “bottom line.” Net income is calculated by subtracting totally expenses from total revenues.

Owner's Equity – OE
Definition: An owner’s equity is typically explained in terms of the percentage amount of stock a person has ownership interest in the company. The owners of the stock are commonly referred to as the shareholders.

Present Value – PV
Definition: The value of how much a future sum of money is worth today. Present value helps us understand how receiving $100 now is worth more than receiving $100 a year from now. See an example of the time value of money here.

Profit and Loss Statement – P&L
Definition: A financial statement that is used to summarize a company’s performance and financial position by reviewing revenues, costs and expenses during a specific period of time; such a quarterly or annually.

Return on Investment – ROI
Definition: A measure used to evaluate the financial performance relative to the amount of money that was invested. The ROI is calculated by dividing the net profit by the cost of the investment. The result is often expressed as a percentage. See an example here.
​
Statement—STMT
Definition: A periodic summary of account activity with a beginning and an ending date. Statements are often provided monthly or quarterly.

Source: Definitions were compiled from Investopida.
 
Contact Robert at: [email protected]          Phone: 406-926-1057
 
​Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!
Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.

UPDATE! The new overtime laws will NOT go in to affect on December 1st! On November 22nd, a federal judge in Texas issued a nationwide injunction blocking the Department of Labor's rule requiring overtime pay for 4 million workers. In the judge's decision he writes that 21 states and 50 business groups have sued to block the rule stand a significant chance at winning their lawsuit. And, that these states and businesses would suffer serious financial harm if the new requirements took affect on December 1st. 

The Obama Administration argues that it is merely updating the rule to keep up with the modern economy, but the judge said that the pay increase would eliminate the exception labor law for bona fide executives, administrative or professional employees.. The judge also said that the Department of Labor must examine the duties of the employees to determine who fits the exception. 

The details are explained below in the blog post. 

BACKGROUND

​The Fair Labor Standards Act (FLSA) was created in 1938. The FLSA is a federal law applies to employees in all 50 states. This Act required that most employees be paid at least minimum wage for all hours that they work, and overtime pay if someone works more than 40 hours in a week. The rate of overtime pay was established at 1.5 times the regular rate of hourly pay.
EXEMPTIONS
Certain employees are granted an exemption from both minimum wage and overtime laws. They are:
-Bone Fide Executives
-Administrative Employees
-Professional Employees
-Outsides Sales Employees
-Certain Computer Employees
 
Merely holding a specific job title is not enough to claim an exemption. To be granted an exemption, employees’ job descriptions and everyday duties must meet certain eligibility requirements.

​WHAT IT MEANS TO BE SALARIED
Salaried employees are paid a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. For most employees, the predetermined amount cannot be reduced because of variations in the quality or quantity of work. But, the FLSA also has exemptions for this, too.
BENEFITS OF SALARY
Traditionally, being salaried was reserved for higher-level positions. There was an elevated status that came along with being a salaried employee.
The employee has earned a position that no longer requires them to punch a clock or track their time.
Salaried employees often experience more flexibility with their schedule. Many employers have a trusting attitude towards salaried employees. The mentality appears to be that as long as the work is done—and done well—they don’t care about how and when it takes place. This is a benefit to many salaried positions that is as precious as financial compensation.

WHAT HAPPENS DECEMBER 1st
​
On December 1st, 2016—yeah, next week—the Department of Labor’s (DOL) final rule updating overtime regulations goes into effect. The DOL has been updating regulations that govern exemption status over the past two years.
What are the results of their work, you might ask? Their work sets the standard salary level at the 40th percentile of earnings of full time salaried workers in the lowest-wage census region. The current lowest wage region is located in the southern region of the US, with an average weekly pay of $913 and $47,476 as an annual salary for a full-time employee.
An annual compensation requirement was set for highly compensated employees (HCE), too. The details of this measure are outside the scope of this blog post and will not be discussed at this time.
Another benefit of the FLSA was that it also established a mechanism to automatically update the salary and compensation levels every three years to insure they stay at or above the standards set forth in the Act. And, to insure that they continue to provide useful and effective tests for exemption. Every three years the base salary requirements will be adjusted to match the current 40th-percentile earnings.
Additionally, the final rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the new standard salary level. This, too, is outside the scope of this article and not discussed here. 

HOW WILL EMPLOYERS REACT TO THESE NEW REGULATIONS
​
There are numerous ways employers could react to the new regulations. Let’s review a few scenarios.
Employers could migrate current salaried employees earning below $913 a week back to hourly pay at a comparative rate to their current salary. The employee will then be required to track time and will need to be paid overtime if they work in excess of 40 hours a week.
Alternatively, they could keep salaried employees that make less than $913 a week at their current salary. However, the employee will be required to track their time and submit reports documenting all hours worked in excess of 40 per week. The employee will need to be paid at 1.5 their equivalent hourly rate for all hours worked in excess of 40 hours. Their equivalent hourly rate has to be calculated based on their base annual salary. 
A third option is to give the salaried employee a raise by increasing salaried workers wages to at least $913 a week.
How will the new regulations affect your business? Employers do have choices for how to implement these changes. To learn more you can visit the United States Department of Labor Website at https://www.dol.gov/whd/overtime/final2016/. We have summarized the main points and how they may impact your business. Mill Creek Accounting Services is available for consultations to help you make the best choice for your business.  

For a complimentary consultation about how Mill Creek Accounting Services can help your small business contact Robert at Mill Creek Accounting Services in Missoula. We offer affordable accounting for your small business that will save you time and money.

Contact Robert at:  [email protected]          Phone: 406-926-1057

​Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!
​
Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.
 
 

​Remember this summer when we blogged about how preparing your books in advance meant that you’d get to enjoy the holiday season? Well—now is really the time to make sure your books are prepared because the end of the year is just around the corner. If your books are in order before you hand them off to your CPA you’ll be able to focus on getting the best tax return possible rather than scrambling to get your materials in order. (And, the less time your CPA needs to spend sorting out your finances, the more money you save on tax preparation, too.)

The objective is: “What do we need to do now to make sure you’re set up for 2016 taxes?”

After you have tallied all your receipts, expenses, revenue and related materials you’ll be able to assess the next steps to take.
To avoid paying more tax than necessary, you may find that now is the right time to pay yourself more, or that it’s time to buy some new equipment for your business. These actions are time-sensitive and must be done during 2016 to count towards this year’s taxes.
​

​PAYROLL
Does your company have employees? Payroll is a topic of major importance this time of year. It’s best to review all 2016 payroll now because in the end of January you are required to send W2s to your employees and to file Annual Payroll reports.

Did you get any notices from the IRS or state agencies such as the Department of Labor? If so it means you may have made a mistake on your payroll which could result in your business owing more money and possibly a penalty. Mill Creek Accounting Services can help you sort out these matters.

When you file your Annual Reports—which are due at the end of January—you’re locking 2016 in to stone. Careful consideration now will make a world of difference by increasing your tax savings and decreasing your stress level.  
​        

For a complimentary consultation about how Mill Creek Accounting Services can help your small business contact Robert at Mill Creek Accounting Services in Missoula. We offer affordable accounting for your small business that will save you time and money.

Contact Robert at:     [email protected]       Phone: 406-926-1057
​
​Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!
Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT. 

What, what, wha!? The first step to successfully filing your tax documents is understanding the terminology!

​As a small business owner you’re responsible for filing your company’s taxes. Filling out the forms—or even knowing what forms to fill out can be challenging sometimes. Here is a glossary of payroll tax terms that will help you navigate the system. For a complimentary accounting and bookkeeping consultation please contact Mill Creek Accounting Services today!
 
Federal Unemployment Tax – also called FUTA – has a special payment arrangement.  As you pay payroll you set aside the tax owed for FUTA in a liability account.  If at any time during a calendar year your FUTA tax exceeds $500 you have to make a deposit.  The deposit is due by the last day of the month following the end of the quarter where the liability was $500 or more. Phew!!! That seems like a mouth full!  If your FUTA liability never reaches $500, then you do not have to make a deposit.  You can make your payment annually.
 
State Income Tax Withholding – Generally this payment follows the same payment cycle as the 941 deposit.  So you have to deposit the liability by the 15th of the month for the prior month’s activity.
 
State Unemployment Tax – Payment is due quarterly – make payments to Unemployment Insurance Division.  For example, at the end of the first Quarter, March 31, you have until approximately April 30th to make your payment.

So know we know the various taxes and when they are due, now how do you actually pay them?  Take a look at the list below:
 

• 941 Deposit – The IRS uses an online system called EFTPS, which allows you to log in and pay the 941 deposit whenever you need to
• FUTA Payment – Can be paid on EFTPS or as a check payment annually
• State Income Tax – For Montana, business can apply for an online account called TAP, Taxpayer Access Point.  A check can be sent, make sure to send the payment with Form MW-1, which is a Montana Withholding Tax Payment Voucher.
• State Unemployment Tax – For Montana, payment can be made by check payable to Unemployment Insurance Division.  Department of Labor and Industry also has an online system called UI eServices for Employers.  Register for this online system and you can make payments online.

 
So we now know what taxes need to be paid, when they are due, and where to pay them.  Now how do the various agencies know you have paid the correct amounts?
 
Each year every company that has payroll is required to file Quarterly payroll reports and Annual payroll reports.  The various agencies use these reports to verify if your payments are correct or not.  The following list explains the reports due:
 
Form 941 – Due Quarterly by the last day of the month following the end of a quarter.  This report verifies that your 941 deposits for the quarter are correct.  There should be no money owed with this report, as you have already made your deposits.
 
Form 940 – Due Annually – Form 940 is used to determine the total tax due for your Federal Unemployment tax.  This report should be filed by February 1st for the prior year’s payroll activity.  Generally, you will need to send the report with a payment, if you did not have to make a 940 deposit during the prior year.
 
MW-3 Reconciliation – Due Annually, this report reconciles your wages for state withholding purposes.  Unlike the feds that require a quarterly reconciliation on form 941, the state of MT reconciles wages annually.  This report also requires copies of W-2 and 1099s (discussed in another blog) to be submitted.
 
Form UI-5 – Montana Employer’s Unemployment Insurance Quarterly Wage Report – This report is a quarterly report used to report wages and calculate your MT Unemployment tax.  You will submit payment with this form after each quarter ends.
 
Form W-2 – Due annually – This form is filled out for the following:

• W-2 Copy A – For Social Security Administration
• Copy 1 – For State, City, or Local Tax Department (MW-3 Reconciliation)
• Copy B – To be filed with employee’s federal tax return
• Copy C – For Employee’s Records
• Copy 2 – To Be Filed with Employee’s State, City, or Local Income tax return
• Copy D – For employer

 
Form W-3 – To be filed with Copy A of form W-2 for all of your employees.  This report goes to the Social Security Administration as verification that all social security deposits have been properly made.
 
Contact Robert at: [email protected]          Phone: 406-926-1057
 
​Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!
Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.
 
 

Paying a wage to an employee seems like it should be pretty straight forward.  For the most part it is however there are few things you, as a small business owner should be aware of.
 
First off, in order to pay an employee a wage you need to apply for an EIN with the IRS.  Think of your EIN, Employer Identification Number, as your account number with the IRS.  It is no different than having an account number with your phone company.  You will also need accounts at the state level as well.  For Montana, you will need a withholding account with the department of revenue, and an account number with the Department of Labor and Industry for Unemployment Insurance.
 
​
Employee Documents:
You have your accounts, you have an employee so now you are ready to run payroll.  Wait?  Did you have your employee fill out their employment documents?  In order to run payroll for your employee correctly, you need to have them fill out a W-4.  The W-4 establishes the amount of federal income tax that the employee desires to have withheld from their paycheck.  This is accomplished by having the employee identify the number of dependants they have.  And through magic (ok, tax tables) the correct amount of withholding tax is withheld.  State income tax withholdings are based on the W-4 as well.
 
I see some eyes have glazed over, with talk of withholding taxes and state income tax!  A quick lesson:
 

• Federal Income Tax Withholding = the employee’s money withheld from their paycheck to pay towards their income tax liability on the federal level.
• State Income Tax Withholding = the same as above, but at the state level.

 
Wait everyone always complains about payroll being expensive to employers, but what you have shown is employee’s paying their own taxes through withholdings.  As all good infomercials say, “but wait!  There’s more!”
 
Payroll Taxes:
The following is a list of the typical payroll taxes and where the money comes from to pay it:

• Federal Income Tax – paid by employee
• Social Security – paid by employee and employer
• Medicare – Paid by employee and employer
• Federal Unemployment Tax – Paid by employer
• State Income Tax – paid by employee
• State Unemployment – tax paid by employer

 
This list only includes Federal and State level taxes.  Remember, there can be other withholdings, deductions, child support, health insurance payments, union dues and benefits (some are paid by the union member, some by the employer), and etc.
 
But Wait—There’s Still More:
Ok, so we are withholding money on the employee’s behalf, and then you say we have to pay these taxes also, so how does the money get to where it needs to go?
 
Typically, all new employers are on what is called a monthly depositor schedule.  What this means is, you have until the 15th of a month to pay or “deposit” the taxes you owe “payroll liabilities” with the necessary taxing authority, for the prior month’s payroll activity.  So you run payroll in May, you have until June 15th to make your deposits.  Fail to do so, and you may incur penalties and interest.
 
Let’s simplify it even further!
 
Federal Income Tax withholding
Social Security Company
Social Security Employee
Medicare Company
Medicare Employee
 
The above items are all paid at the same time; the payment is called: a 941 Deposit.  This payment is made to the United States Treasury. 
 
There you have it. An overview of how to pay an employee and pay your payroll taxes, too! This can be a complicated subject which is why Robert at Mill Creek Accounting Services is here to help. Having the help of a professional accountant may allow you to focus on other areas of your business—and give you peace of mind in knowing your business finances are in good hands.
 
Contact Robert at: [email protected]           Phone: 406-926-1057
 
​Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!
Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.
 

Have you given consideration to what business entity structure is best for your business? For many entrepreneurs, a Limited Liability Company—commonly referred to as an LLC—is the ideal choice. If an LLC is right for you then complete this checklist and you’ll be in business.

1. Register With the Secretary of State in the State(s) where you’ll do business: For Montana you can find more information and the necessary forms to file here:
http://sos.mt.gov/business/Forms/
Or call them: (406) 444-2034
But before you file paperwork, check to make sure your desired business name is available. (If the name you desire is already in use then your paperwork will be rejected.)
You can do that here: https://app.mt.gov/bes/
 If your paperwork is rejected by the State it will be sent back to you for revision. You’ll need to submit a refilling fee, which is 50% of the original fee. Checking to make sure your business name is available could help you avoid need to be resubmit your application. I suggest calling the Montana Secretary of State Business office with any questions you may have before filing your paperwork. Sometimes this process can be tedious. For hassle-free filing Mill Creek Accounting Services can prepare and file paperwork on your behalf.
 
2.  Open Bank Accounts: 
Once your LLC has been approved by the Secretary of State it’s time to set up a business checking account. Bring your LLC documentation from the State to the bank or credit union of your choice, and ask to set up a business checking account. No, you do not need an Employee Identification Number—commonly referred to as an EIN—to open a bank account. You can use your social security number instead.  This is known as a single member LLC.
Using a business bank account is critical to the financial well-being of your company. Until this process is finalized, make sure to keep track of all personal funds used to make business purchases. Also, keep your receipts. It is important to separate your business finances from your personal finances as soon as possible.  It will make your accountant happy, and it will strengthen your limited liability protection.  Co-mingling funds is a sure fire way to lose the risk protections offered by the entity you have formed.
 
3. Seed Bank Account With Start Up Capital: 
Deposit your start up funds into your business bank account. These funds may come from a business loan, an investor or your own personal capital.
 
4. Obtain Your Domain Name: 
Mill Creek Accounting Services highly recommends purchasing your website domain name ASAP once your business name is approved by the State. Once you have purchased your domain name you can use it to create business email addresses for you and any employees. It is good to have your business communications branded from the beginning, especially for sensitive matters.
 
5. Build Accounting Model:
Now it’s time to set up an accounting system so that you can record your business activity. For example, how will you charge people?
 
Consider things like:
Will you charge a flat rate? Or, an hourly rate?
Is this a hard money contract—or a time & material project?
Do you sell products with markups? If so—how will you determine the markup?
What payments will you accept—and how?
Will you need to run an accounts payable system?
You may also need to be setup to handle “job costing” which is defined as determining the profitability of a single project.
 
6. Determine Company’s Assets:
​Make sure your company’s assets are reflected on the balance sheet.
A company’s asset is defined as something that has long-term benefit to the company. . Examples include: bank accounts and certain purchases like furniture or office equipment.  Fixed assets such as equipment, furniture, and computers, etc., should be reflected on the balance sheet.  Remember these types of assets have to be depreciated over time.  The good news is, “effective for taxable years beginning on or after January 1, 2016, The IRS in Notice 2015-82 increased the de minimis safe harbor threshold from $500 to $2500 per invoice or item . . .”  This means purchases up to $2,500 can be deducted as an expense in the tax year of purchase, rather than be capitalized and depreciated over multiple years.
This is just barely scratching the surface of section 263(a) of the IRC, if you would like to know more, give me a call.
 
You have completed the checklist! But—the work has just begun. Now, run the system, evaluate your experience and make tweaks where necessary.  And give Mill Creek Accounting Services a call!
 
Contact Robert at: [email protected]           
Phone: 406-926-1057

​Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!
Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.
 
 

As a small business owner in Missoula you’re busy stocking the shelves and managing day-to-day operations. Oftentimes, you may put in well over 40 hours a week just to keep the doors open. Tasks are constantly postponed to the next day. The next day becomes next week—and now suddenly it’s July and your books are not in order.


​The secret to successful small business accounting is to have your books in order by July, instead of waiting until the end of the year.



How to Set Yourself up For Success                                                                                   1. Reconcile Your Books
Are all your transactions posted? Make sure that you’ve accounted for all the expenses and revenue generated this year. This is also a good time to clear out any miscellaneous account activity. If you wait, you might forget important details about the transaction. 

Financial Analysis
Are you on track to owe money at the end of the year?
Are you on track to get a return?

Benefits of Having Your Books Organized In July
If your books are set up now you’ll have time in November and December to do tax planning with your CPA. Rather than scrambling in late December to collect receipts you’ll be peacefully enjoying the holidays because your financial preparation set you up for success.
​
If you set yourself up for success now, you’ll be able to determine how to best position your business for filing your taxes.  There are many tools and options available that your CPA can recommend to save you money at tax time.  However, if your books are not up to date now, your CPA will not have accurate information to help you plan.

Right now—July—is the time to make sure your small business is set up for financial success. For a complimentary consultation about your small business contact Robert at Mill Creek Accounting Services in Missoula. We offer affordable accounting services that will save you time and money.

Email: [email protected]        Phone: 406-926-1057
​
Mill Creek Accounting Services, LLC was founded with the mission to provide a resource for accounting services to Missoula and its surrounding area organizations. Mill Creek Accounting Services have seen it over and over again, when institutions focus purely on their production and service needs, while they neglected their accounting systems. The results spoke for themselves: unreliable financial information, slow invoicing and payment collections, strained relationships, and crushing stress on owners and staff. There is a better way to do business!

Click here to learn more: www.millcreekaccounting.com. You can schedule a complimentary consultation for your small business in Missoula, MT.