I’ll forego the obvious statement about how long it’s been since I posted…the past few months have been good, with many lessons learned. Hopefully, I can get some of those up here for us. Here’s the first one:
When you get payment from a customer, receive the payment into your accounting software, but immediately transfer funds from the main checking account to a Cost of Goods Sold (COGS) account, a sales tax account and any other account to hold money you know you’ll have to pay, based on what you sold. That way, the money to pay those things is already set aside and you know what kind of money you have to work with.
I went probably eight months without doing this and I always struggled to pay my COGS and my sales tax payments. Now, I never worry about any of them so I’m current with my vendors and the state.
Some of the other topics I’d like to cover in the near future are: what types of taxes have to be paid, and when; how to handle hiring and firing and where to look for good information (nolo).