Accounting Archives - How to Start a Handyman Business

Will I Get More Business If I Accept Credit Cards?

Posted by srbobc

· April 3, 2012

I haven’t had a single customer ask if I accept credit cards. I don’t think they expect me to. But I do offer the option and I think it brings me more business. There are some compelling reasons to invest the money it takes to have a merchant account. People will often have you do more work if they know…

What About Preliminary Notices and Mechanics Liens?

Posted by srbobc

· April 3, 2012

Here is a definition for you: A Preliminary Notice contains language which describes the details of the contract and who the interested parties are to the transaction. It also makes a statement to the property owner that a mechanics lien could be placed on the subject property, what the consequences of such a lien placement are, and what their remedies…

Do I Need to Keep a Mileage Log?

Posted by srbobc

· April 3, 2012

Yes. At the time of this writing, IRS Form 2106 instructions (for 2008 returns) had this to say about record keeping for your vehicle: “You cannot deduct expenses for travel…unless you keep records to prove the time, place, (and) business purpose…of these expenses.” I keep a small spiral notebook in the visor of my truck. Each morning I list the…

What Should My Chart of Accounts Look Like?

Posted by srbobc

· April 3, 2012

Since the 1040 Schedule C is your basic profit and loss statement, I set up my chart of accounts to match the Schedule C as closely as possible. You should need very few categories that aren’t listed on the Schedule C. If your state has a sales tax and you have differing tax rates in your area you should break…

Do I Need an Accountant and a Bookkeeper?

Posted by srbobc

· April 3, 2012

Unless you’ve had a lot of experience with taxes, you may want to have a tax preparer complete your first year’s tax returns. In subsequent years you can often prepare your own taxes by following last year’s example. I have found that after the chart of accounts has been set up properly your bookkeeping system simply requires maintenance. Bookkeeping software…

About Record Keeping and Taxes

Posted by srbobc

· April 3, 2012

Federal income taxes, state income taxes, city business license tax, sales tax, payroll taxes, wow! Taxes and recordkeeping can be quite a load. Your record keeping will make or break your business success. Setting your books up correctly from the start will make everything easier when it becomes time to prepare your taxes. Here are some keys to success: Open…

Should I Incorporate My Handyman Business?

Posted by srbobc

· April 3, 2012

What legal business structure should I choose? The three most commonly chosen legal business structures are Sole Proprietorship, Limited Liability Company (LLC), and S Corporation. Because I am not a lawyer or a tax attorney I am not qualified to recommend one structure over another. I can only tell you what I have done and strongly recommend that you consult…

What About Billing Customers for Completed Work?

Posted by srbobc

· April 3, 2012

If it brings you more business, just say “Yes.” This has come up in three different situations. When I’ve done commercial work, work for a property management company or while doing pest repairs for real estate agents. The problem with billing customers on account is the time delay in receiving payment. Commercial accounts often take up to 90 days to…

About Invoicing and Billing for Handyman Work

Posted by srbobc

· April 3, 2012

To promote a professional image and set yourself apart from your competition, you must use a professional looking invoice. Customers appreciate having a paid invoice and you will find that all commercial work will require it. The invoice that I use carries my logo, name and address, and has a place for the customer to sign that they have accepted…

Will I Get More Business If I Accept Credit Cards?

What About Preliminary Notices and Mechanics Liens?

Do I Need to Keep a Mileage Log?

What Should My Chart of Accounts Look Like?

Do I Need an Accountant and a Bookkeeper?

About Record Keeping and Taxes

Should I Incorporate My Handyman Business?

What About Billing Customers for Completed Work?

About Invoicing and Billing for Handyman Work

How to Start a Handyman Business

Does a Handyman need to be licensed?

Should I charge by the hour or by the job?

Do I need Handyman Insurance?