January 16, 2018, 02:49:06 PM

Author Topic: Accounting for Entrepreneurs  (Read 1316 times)

josiahgarber

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Accounting for Entrepreneurs
« on: December 27, 2011, 08:42:16 PM »
I earn money in several different was as I am an entrepreneur and always trying new things.  Is there a way to structure business accounting so that you can be flexible with all the different ventures that you are engaged in? 

Jack I am curious how you do this as you have several websites and income streams.

Can I keep one overarching business and just throw everything under that same business?  It seems cumbersome to do the accounting and separate bank accounts for 5+ different income streams or areas of focus.

tomd

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Re: Accounting for Entrepreneurs
« Reply #1 on: January 31, 2012, 05:44:51 AM »
I'd use a single account and a detailed General Ledger to start with.

Your G/L can have sub-accounts for each buisness, and each sub-account can have the normal catagories:

mxitman

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Re: Accounting for Entrepreneurs
« Reply #2 on: January 31, 2012, 05:27:04 PM »
Yea I have one LLC and run several revenue stream through that, plus it's easier for deductions IMO. I keep a general ledger and track everything that way as "Tomd" stated, when I setup everything I use my business LLC contact info. Pretty easy, I use a business accountant and just hand everything over and he does all the work for around $300-500. I was audited once and having the accountant made it super easy.
HVAC/R Mechanic, Stay At Home Dad Trying To Get Some Of My Ideas Flowing.

http://ricksdiy.com & http://heezy.com

msharman

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Re: Accounting for Entrepreneurs
« Reply #3 on: September 03, 2012, 07:35:07 PM »
If you want it all under the one business, use classes in QuickBooks or whatever accounting system you use. This will allow you to separate income and expenses into the different areas you are working in. You can run a Profit/Loss by class and figure out the bottom line for each, but will also allow you to keep it all together in one file and make it easy on your accountant come tax time.
If you are wanting to separate the entities for liability purposes, then you need to set up different businesses, bank accounts, accounting files, etc. or all of it is in the same pool if someone wants to come after you.

Thanks!

Mark
http://TheSumOfBusiness.com/ and http://CrossroadsAccountingLLC.com/
Let me know if you have any accounting or business finance questions and I would be happy to help you out!