I remember when we were just starting Backyard Bookkeeper, we were so clueless. Everything seemed so hard and confusing, and there was so much information everywhere, very little of it helpful. I wasted a lot of time on the SCORE website, for example. That’s what everyone told me at the time was the best resource, but I didn’t find it useful at all. (This was 2008.) The site had some resources about how to write a business plan and some articles about big picture strategy. But I couldn’t find any simple checklists for the basic things, like how to set up the business legally, how to start advertising, or where to get new clients. 

Eventually we needed some financing to buy a new computer, and we spent several hours writing a very pretty business plan that we could take to our bank to prove why we needed the funds. The loan officer accepted the printed plan but never even opened it. They ran our credit and just issued what was essentially an overdraft account to tie to our checking account. 

When we hired employees I did everything manually because I didn’t want to sign up for additional service fees. I used the tax tables on IRS.gov to calculate net pay and handwrote the paychecks. Sometime during the first year we had a lean quarter and I neglected to pay the payroll tax when it was due. I won’t bore you with the details, but the fallout from not paying about $900 in taxes to the various agencies was extreme, and it took probably a year to fully resolve. 

My point is, all of the stress and extra effort could have been easily avoided if I had had access to the right information at the right time. That’s why we started Step One! I love when I am able to help a new business owner by giving them that one key piece of information that will make everything easier. Here are some examples that I find particularly gratifying:

• If you pay someone using a debit or credit card, you aren’t supposed to 1099 them (accountant fees, legal fees, etc), so you can avoid a lot of reporting requirements that way.

• A single member LLC is the simplest kind of entity to set up and doesn’t require a separate tax return like all the others do, resulting in cheaper bookkeeping and tax prep.

• If you have a nonprofit, you can buy QBO subscriptions at a 90+% discount on techsoup.org

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