Financial

ACCOUNTING

Hiring Bookkeepers or Accountants

Accountants are useful not only in keeping track of your finances but also an excellent reference.

Some accountants have knowledge as to where you benefit the most in situations or what your limitations are

Can clarify questions about business expenses

Accountants very important because an audit is required in order to qualify for government funding

For Example, the Section 179 expensing election allows a $24,000 deduction in cost of vehicles weighing over 6,000 pounds for business use.

Balance accounts and put books in order on a regular basis or hire a bookkeeper instead of hiring a CPA

For taxes, hire enrolled agents who are income-tax specialist licensed to prepare returns and filings

Enrolled Agents have to pass examinations given by the IRS

Charge from $50-$150 an hour

Accountants are more useful for looking over the accounting as well as for supplying information where computer programs can take care of the regular daily accounting such as accounts payable, accounts receivable, and payroll. Programs like QuickBooks and Quicken are fairly easy to use and easy to keep records with.

INSURANCE

Another important business aspect is insurance protection. Risks over which you have no control should be insured against, however, losses which would be trivial if they did occur should not be insured nor should you pay for protection when the premium is a significant proportion of the value of the property being insured. Major types of insurance include: fire, general liability, automobile liability, automobile physical damage, workers' comp, crime, business interruption, glass, group life (health and disability)

Business Insurance:

· Business Owner's Policy

Provides coverage for property (fire, wind, theft, etc.), liability (injury of someone in your business or by your product), business interruption, and, in some cases, workers' compensation

• General Liability Insurance

Coverage of injury to another person or damage to a person's property for which you are legally responsible

• Property Insurance

Provides coverage to business for loss or damage to your property (fire/vandalism/etc)

Building - Covers damage to the building (fire/lightining/wind/vandalism/snow on roof)

Personal - Covers damage to property inside the building

• Professional Liability Insurance

Protects you financially in the case of a claim against you for negligence, errors, omissions, or wrongful acts in the performance of duties

TAXES & COST ESTIMATES

The exact taxes and cost estimates are extremely difficult to determine at this time since no precise information is known about how this product would actually be made and therefore, the cost of manufacturing is difficult to determine. Taxes would be most likely dealt with through an accountant which can be seen in the Accounting section.