I have a very small business and do not know what to do! Need help?

Question

my husband and I have a small trucking business. our clients are usually people who need dirt or rocks or gravel of some sort. we have 2 dump trucks that basically run everyday and we have a tax i.d. number but as far as anything else, we really don't know how to use our business to get us other things. and we also do not know exactly what to do to have our income recorded so that we can file taxes at the years end or use our income to build a home or whatever. i really need some sound advice from someone who has been there or knows a lot about this kinda stuff.

THANKS FOR THE HELP!

Answer 1

As in ALL businesses. You need to hire an attorney to answer legal questions. You need an accountant to help you get your books started and then to do your taxes. Most businesses go out of business because they think they can get help from Cousin Joe or some neighbor. Hire a professional. Do it right. The fines of doing it wrong outweigh the cost of getting advice in the beginning.

Answer 2

OK here's some help.

It seems from your question that you are already running your trucks at full capacity. So first question is: "Are you earning enough now?"

If the answer is yes then skip the next paragraph.

If the answer is no then you need to expand in one of two ways.
1) Increase your prices if your customers will pay it.
2) Get another truck and driver and market to fill it up.

With respect to income and taxes. Get a copy of Quicken and keep good records. Just before the end of tax year then get tax advice.

Take just enough out of the business to cover your living costs. Make good notes of how much and when. At the end of the year your accountant will tell you if there is more that you can take out.

You seem to be doing well at the moment. If you have people asking for your services and your have no space in the truck at the moment - then think about getting another truck.

Here is one of my articles that may be of some assistance.
Starting a New Business – Your Business Framework – What Scaffolding Do You Need?

http://www.articleshut.com/index.php?page=article&article_id=26990

Answer 3

I own a business and have owned two businesses over the past 20 years. When we first started our business, we incorporated the business. The cost was $300.00. Although it is less of a protection these days, incorporating your business sheilds your personal assets in the event of a lawsuit (providing you haven't signed any personal guarantees). You can do this yourself by going to the secretary of state in the state you are located. It is a matter picking an available name for your corporation, filling out the paper work and then paying the fee. You can operate your business as a sole proprietorship as you are now doing, but I personally think you would be better off to incorporate if you are in the trucking business. You also need liability insurance for your business.

You should then go to a CPA. You will need to get a Federal Tax ID number and a state tax ID number. A CPA can help you with this and help in setting up your books or the "chart of accounts" for your business. CPAs can be expensive, but typically you do not need to consult with them that often. They will also prepare your taxes at the end of each year.

If you have no accounting background, the next thing you need to do is hire a professional bookkeeper who can come in once or twice a month (maybe more) and keep track of your income and expenses. A good bookkeeper is generally not that expensive. I would say $15.00 to $20.00 per hour. I am not sure if you are using a software program to track your business now, but your CPA could probably recommend a good and affordable program for your business. Quick Books is very popular and relatively easy to use.

I think the sooner you do these things, the better off you will be. It can be hassle setting up all of these systems, but if you are running a legitimate business it is a necessity and will be to your benefit in the long run.

Answer 4

You may use accounting software like quicken but that takes money. You may buy a ledger book. It contains columns for date, description, and debit and credit columns. the debit is your money coming in. and the credit is for money going out (for example, paying for gas, truck repairs etcetera). You total them up and use those numbers to file tax returns (income, payroll, etcetera).

The use of your profit is a judgment call. Basically you set aside enough to keep the business running, the rest you may spend anyway you want, including building a home.

Congratulations. Running a business is hard but in the long run more satisfying than working for someone else.

Answer 5

I had a small business for over 30 years. I was tops when it came to the technical stuff but lousy on the accounting and legal end. I had an average of 15 plus employees and solved most all of my problems by hiring people that were smarter than me. Get professional help on the legal and accounting end of your business. It will be the best investment you will ever make in business. Good luck to both of you and God bless!!

Answer 6

50% of new US businesses fail due to the accounting and tax end of the business.

Get a good CPA, it is unbelievable how many taxes your situation calls for and you don't have a clue.

Good luck.