Presentation on Start-up Accounting - DRAFT

1. Present: Start-up Accounting: What you need to know from “Day 0”™ Presented by: Katrina M Harrell, President of The KM Harrell Group, LLC CEO & Founder, Your Simple Bookkeeper, Inc. www.yoursimplebookkeeper.com

2. The KM Harrell Group, LLC Online Business Development & Management Consulting Firm Headquartered in Clayton, NC. Get “unstuck” and transform your vision into reality with sound, practical business management practices as well as innovative business development ideas and strategies. “Our passion becomes your inspiration. Our knowledge becomes your foundation” Your Simple Bookkeeper, Inc. Innovative bookkeeping and accounting firm Build on a model of providing web-based virtual bookkeeping services to micro and small businesses. Our fees start as low as $35 per month and include services not typical of accounting and bookkeeping firm. Who We Are

3. Who We Are cont. FREE Webinars Weekly Live Internet chat Affordable High-Quality bookkeeping services Monthly newsletters Bookkeeping tips via Facebook, Twitter, blogs, vlog. Web-based virtual accounting services. Recordkeeping and Bookkeeping education for small businesses. Small business community on our website Strategies to help you align your business profit goals with your accounting and bookkeeping needs

4. Learn more: Search: Katrinamharrelland Your Simple Bookkeeper http://www.yoursimplebookkeeper.com 888.449.4145 toll free 888.767.1966 fax 919.508.7608 office info@yoursimplebookkeeper.com Skype: katrina.yoursimplebookkeeper Tungle.me:Katrinamharrell PO Box 67 Clayton, NC 27528

5. What is the GOAL? At the end of this presentation, participants will understand the basic concepts, tools and requirements needed to successfully start a business and make meaningful decisions.

6. Starting a business is exhilarating challenging, risky and fun. It’s impossible to know all there is to successfully start and manage a business with laws and requirements constantly changing. Intro

7. Intro cont. Participants will learn what is important to know while your business is in start-up. Basics of effective recordkeeping CPA, Accountant, Bookkeeper what’s the difference? How to choose a great bookkeeper and CPA Things to consider when selecting the proper business entity IRS requirements How to avoid overspending Managing start-up cash flow

9. Various types of entities and a basic understanding of them

10. The tax and IRS implications of various entity selections

11. IRS Requirements

12. What do they require?

13. How to ensure you avoid an audit

14. Recordkeeping Basics

15. A brief overview of recordkeeping basics

16. Managing Start up cash flow

17. What to consider in managing cash flow

18. How to save money when starting your business

19. Selecting a bookkeeper/CPA

20. What to look for

21. When do you need one?Outline

22. Record-keeping and your Start-up Does not need to be complex Can be based on the size of your business There is no IRS requirement for how records should be organized Should be easy to follow Can be computerized or manual or combination of both

23. Identify all your business records Purchase a small accordion file File folders Labels Hanging files Retention Schedule Sort and organize: Organizational documents (permits, licenses, articles, etc) Tax documents Vendor records Inventory records Customer records Accounting Records Bank Records Contractual Agreements Forms Used in Business How to create a System

24. Keep these in a separate permanent file for easy access. Should include: Articles of Incorporation Bylaws SS-4 Tax ID Registration Register of Deeds Shareholder Minutes and Consents, Board Minutes and Consents, Action of Incorporator, and amendments to the various corporate documents. If your business is not a corporation, then the other documents that may be relevant here are partnership agreements, LLC documents, consents of the owners and similar records. Organizational Documents

25. Tracking expenses properly Tracking sales Inventory control Employee records and payroll Time wasting searching for records instead of making money Compliance with regulatory departments What’s the point? Poor Recordkeeping and your business

26. Choosing your Financial Professional

28. Processes data according to IRS guidelines

29. Processes payroll

30. Ensures data is captured and process accurately and precisely

31. Reports accurate and timely financial data to owner

32. Assist in managing internal control in business

34. Interprets financial reports to management (what do the numbers MEAN?)

35. Can perform bookkeeper functions

36. Create internal control processes to safe-guard business assets

37. Perform internal audits of business

38. Focus – “How do the numbers effect the overall business?”

39. Help ensure deductions are maximized

40. Strategic planning and budgeting

41. Minimum Bachelors Degree in accounting

43. Create internal control processes to safe-guard business assets

44. Perform external audits of business

45. Focus – “How do the numbers effect the public?”

46. Help ensure deductions are maximized

47. Tax and Investment planning

48. Represent at IRS audits

49. Regulatory

50. Required to maintain training

51. State licensed – each state licenses CPA

53. What Business Entity?

55. Easy to form

56. High liability

57. SE tax on Net Income

59. DON’T ! Create a budget Stick to it Bottom line – Does it make cents (sense)? Be creative “Think LEAN” Think Big, Act small Business, not Personal Internet Cloud-computing Saas (Software as a Service) Network Bookkeeping system from “DAY-0”™ Free options “Cart before the horse” syndrome Start-up Cash Flow & Overspending

60. LIVE Broadcast every Wednesday 2-4pm Video archive on website October 1stFREE Bookkeeping services FREE Tax review services Yoursimple Bookkeeper in-a-box coming Dec 2010 10-NON Marketing ways to Grow your business Micro Business Support Services $0-$150 per month FREE accounting software for start-up Monthly review Bill payment and bookkeeping Business entity consulting Mailing list: Updates New promotions Tax tips FREE Business guides More Information & Questions

61. THANK YOU! To schedule your complimentary consultation go to: www.yoursimplebookkeeper.com and select the APPOINTMENT tab Katrina M. Harrell 919.508.6708 katrina@yoursimplebookkeeper.com