Our goal is to provide you your financial reports no later than the 15th of each month. 

We aim to have all questions for the month to you as soon as possible. 

The quicker you respond to our questions, the quicker we can provide you your reports. 

If your responses to our questions are delayed, you will receive delayed reports. Please respond to our questions in as timely as a manner as possible so that we can provide your timely reports so that you can make the most informed business decisions. 

Delays

If we are not able to meet our internal deadline of the 15th of the month due to your delayed response, we will let you know what is missing and send one status update email. 

Once this one status email is sent, we will not send any additional emails and will be waiting for you to provide the information we need in order to complete your books. 

If information is received in the last half of the month, please allow up to 5 business days to turn the information around and provide you your reports. 

Please let us know as soon as possible if you take any of the following actions 

• Open a new credit card or bank account
• Change Banks
• Start selling physical products
• Hire anyone new
• Apply for or receive a loan
• Pay a personal expense from a business account
• Pay a business expense from a personal account

Our hope is that we will complete your books in the most efficient and accurate way possible.

Whenever possible we are always brainstorming ways to make your processes more efficient and keep your bill down. This is possible with your flexibility and willingness to implement and try new things. 

Sometimes there are things that inevitably cause a rate increase. Below is a list of things that could trigger a rate increase, outside from general inflation. 

• Manual Processes
• Increased volume of transactions
• Increased detail in reporting
• Adding new bank accounts
• Management of inventory, or sales tax or other variables

Best practice is to pay all business expenses from a business account or credit card and all personal expenses from a personal account. 

We understand that accidents happen and sometimes an expense will end up on the wrong side! Here is what to do in both cases:

If you accidentally pay a personal expense from a business account:

Let us know! This will likely be recorded as an owners draw. If it is an expense that is on autopay, please correct the billing as soon as possible. 

If you accidentally pay a business expense from a personal account:

Also let us know! We have no way of knowing about this expense unless you make us aware. If you don't tell us, it means missing out on deductions! 

At the end of the day, receipts are a client responsibility and we won't ask you for them. Receipts should be used to back yourself up if you ever happen to be audited. 

Feeling cash poor? The first and best place to look is at your profit and try to find ways to increase profit or cut back on expenses. 

If this is not currently possible and you have a set amount you know you need, a loan could be an option. 

Talk to me before you apply and talk with your CPA especially if you are an S-Corp. 

Wondering how to classify your newest employee? It is not a matter of choice but rather a matter of which one the IRS determines them to be and at the end of the day, it comes down to control. 

The IRS has a 20 point test to determine if someone is a 1099 Contractor or a W-2 Employee. 

Let me know and I can walk you through the test and help you determine how your newest hire should be paid!

Congrats! This is a huge step in your business. You will now need to register with your state and begin running payroll if you are not already doing so. I recommend using ADP or Gusto. Both have HR packages if you need help with contracts, benefits, job descriptions or other relevant topics! 

Reach out to me and we can discuss what the best company for you would be.

If you hire a contractor, start by sending them this form and storing it away for your records. It is much easier to collect a w-9 upfront before the contractor has been paid then trying to chase it down after the fact. 

Make this as easy on you as possible and pay your contractors in a way that prepares the 1099 for you or allows you to not need to file one. Two options are explained below:

1. Payroll Systems These systems will handle the 1099s for you and allow for you to pay your contractors through their system. If you are an S-corp and already paying yourself a salary, this is a great route to go. 

2. Third-Party Processor This may already be happening if your contractor invoices you through a software like Stripe, Paypal, Quickbooks Online, Zero, Dubsado or Honeybook. If this is the case, you do not need to file a 1099-NEC because the payment processor will issue it for you if requirements are met. 

If your client paid you via cash, check, ACH transfer, wire, Venmo, Zelle, Paypal friends and family, etc. Then your client is correct, they need a W-9. Message me if you need assistance filling it out. 

Most of the time you should not need to provide a W-9 if you accept payment via a third party processor. The software will handle the 1099 for you. 

Reach out to me if you have any concerns that a client is asking for a W-9 when they shouldn't be and we can discuss!

You should save at least 25% of your profit for estimated taxes. Your CPA can assist you with what payments you should make and when. Below are some helpful tips regarding estimated tax payments. 

1. Why should I make them? Making estimated tax payments throughout the year allows you to avoid paying interest and penalties to the IRS. 

2. How do I make a payment? You can make a payment online or by mailing a check with a paper voucher. Your CPA can assist you with this and should be involved. 

3. How do I calculate my payment? 25% or more of your profit. 

There are two ways to deduct business miles - the actual method and the standard mileage method. My recommendation is to track via the standard mileage method. Reach out to me and we can talk more about which method would be best in your scenario. 

Download my business mileage tracker here to keep track of your business miles throughout the year!

Wondering what doesn't count as business miles?

Commuting does NOT count as business miles. Outside of commuting, anything else you are doing for business does count!

The best rule of thumb to follow with deductions is that if it was a necessary and ordinary expense incurred for the purpose of generating income, it can be considered a business expense. 

Things get a little grey when expenses qualify that are used for both business and personal. Feel free to message me if you are ever unsure and we can talk through the scenario. 

We are not auditors and will not be auditing your books, if you tell us that something is a business expense we will take you at your word. 

If you tell us something is a business expense that is not, the onus lies with you should you ever be audited by the IRS.

Please consult with your CPA to fully understand your responsibility and risks surrounding deductions

Podcasts: I would love to be on yours and share best practices, tips and tricks!

Expert Trainings: I would love to present to your members and answer any questions they may have about finances or bookkeeping. 

If any of these sound interesting, reach out to me and we can talk about next steps!

Know someone who could use a great bookkeeper? Send them to my client inquiry page at dorothygracebarrow.com/quote and have them put your name in the field "How did you hear about working with Dorothy Grace?"

If they sign on for monthly bookkeeping services, I will send you a $100 referral fee after their first payment has been made!