Benefits of Bookkeeping Services

The rise of the online community has changed the way we do business forever. It has brought us closer to people who can help with our day to day operations and back-end business needs, allowing our businesses to run smoother and more profitably. A key area that makes a huge difference for successful business owners is bookkeeping services.

Bookkeeping is a lot like going to the dentist—no one really wants to take the time to do it, but neglecting the issue can lead to problems down the road. From start-ups to larger businesses, it’s always a good idea to budget for a bookkeeping service. Here are just a few of the benefits you can enjoy by hiring Sonnenburg Consulting to handle your bookkeeping needs:

1. Save Money

Bookkeeping rates are reasonable enough that even small businesses can afford to hire a bookkeeping service, allowing time to grow your ventures and focus on the things that matter most to you. The bottom line is that by outsourcing your bookkeeping operations to Sonnenburg Consulting, you will save money on paying full-time or part-time wages and benefits to an employee. You will also save on lost productivity costs that come with hiring employees onto your payroll. By outsourcing your bookkeeping, you only pay for what you need.

2. Expertise

Outsourcing your bookkeeping services is a great way to have full-time knowledge on your team without having to pay for it around the clock. By putting your books into the hands of Sonnenburg Consulting’s highly skilled staff who understand the best practices and how to properly manage certain tasks, your job becomes a whole lot easier and more effective. We have learned that one bookkeeper is sometimes not enough to find every subtle nuance that can benefit your company. By outsourcing with us, you will have a team of workers and managers checking and double checking each other’s work, helping to ensure that you receive the best services possible.

3. Flexibility

Outsourcing your bookkeeping allows you to expand or cutback in the blink of an eye. Whether you want to grow your business or cut down on spending, your reliable team at Sonnenburg Consulting will provide you with different plans and options that will help you achieve your goals. Outsourcing provides flexibility that in-house bookkeepers just can’t provide.

4. Pay Everything On Time

You know better than anyone that backend office functions can be a heavy distraction from the day-to-day running of things, and sometimes the small things are left undone. Outsourcing your bookkeeping operations gives you valuable time that you can put into bettering your company.
Paying bills is one of those chores that, when neglected, can have serious consequences. Sonnenburg Consulting offers expert bookkeeping services to keep track of your bills, making sure they are paid on time, and checking your statements for any discrepancies or unusual activity.

5. Payroll

You may be the only one now, but someday your business may grow to include more employees. Using a bookkeeping service is a great way to handle your payroll needs. We can write and create checks for you to sign, and will mail them out to your employees or deliver them to your office for you to give to workers. We can do the same thing for freelancers and contractors that you work with. In addition to payments, we will also prepare a W-2 or Form 1099 for each employee or contractor and will deliver all pertinent tax information to your accountant.

6. Reports

It’s true that many small business owners don't know the true financial state of their business. Without analyzing the financial health of your company on a regular basis, your business is sure to fail. Having access to important financial reports is crucial. We will generate the reports you need as often as you want them. Most businesses require financial reports on a bi-weekly basis, but some need one weekly, and a very small business may need reports only once a month. Whatever frequency you choose, we will prepare the reports for you so you will always know where your business stands, preventing problems in the future.

7. Focus on the Big Picture

If you're the kind of person who loves the big picture aspects of operating a business, you probably dread the detailed paperwork required to keep your business running. Closing a deal is exciting and rewarding, but opening a software program, creating invoices and entering payments received is a miserable task when you don't care for details. When you hire Sonnenburg Consulting as your bookkeeping serve, we will take care of those things for you. We use the best accounting software available, allowing us to log in from our offices in Salt Lake City to make those entries for you from your bank statements or reports.

8. Avoid Overdraft Fees and Additional Interest Payments

The duty that is most often delegated to bookkeeping services is bank reconciliation. Relying on your bank statements to give you a clear picture of your financial bottom line could leave you in ruins. Our bookkeepers will handle your accounts payable and accounts receivable, entering the information through your financial software so that you know what your real balance is. Because you won't make the mistake of writing a check for more than you have available, you will never need to worry about overdraft fees or other penalties.

Sonnenburg Consulting, based in Salt Lake City, offers a wide range of professional bookkeeping services for companies of all sizes, and high income clients throughout the United States. Enjoy the benefits of outsourcing your bookkeeping services as early as possible in your business. You won't regret saving time and money! 

Registering Your Business Name

If you choose anything other than you own personal name, you will need to register it with the appropriate authorities to be in compliance with the law. This process is known as registering your “Doing Business As” (DBA) name, and we can help with that!

A DBA is needed in the following situations:

• Sole Proprietors or Partnerships – If you wish to start a business under anything other than your real name, you’ll need to register a DBA so you can do business as another name.

• Existing Corporations or LLCs – If your business is already set up and you want to do business under a name other than your existing corporation or LLC name, you will need to register a DBA.

It's important to know that not all states require the registering of business names or DBAs.

How to Register your “Doing Business As” Name

Registering your DBA is done either with your county clerk’s office or with your state government, depending on where your business is located. There are a few states that do not require the registering of fictitious business names.

After you have selected a name for your business, you will need to register it to comply with the law. Learn more about how to register your business name.

For some businesses, you need to register your business name with state or local government agency. Find out what the requirements are for your state.Register Your Business With State Agencies

Some business types require registration with your state government:

A corporation
A nonprofit organization
A limited-liability company or partnership
If you establish your business as a sole proprietorship, you won’t need to register your business at the state level. However, many states require sole proprietors to use their own name for the business name unless they formally file another name. This is known as a your Doing Business As (DBA) name, trade name or a fictitious name.

Select a state to find out about specific filing requirements in the state where you will form your business.

Changing Your Business Type

Your initial choice of a business type is not permanent. You can start out as a sole proprietorship, and if your business grows and your risk of personal liability increases, you can convert your business to an LLC.

If you change your business structure, follow the Internal Revenue Service's instructions for Changes in Ownership or Organization.

You will also need to file new documents with your state government, and depending on state and local laws, you may also need to obtain new business licenses.

Certain businesses, like ones that sell alcohol or firearms, require a federal license or permit. Find out which ones impact your business and how you can comply. Some states have requirements for specific businesses. Find out what business licenses and permits you need in your state.

What's in a Name?

Our Business Solutions Manager, Shannon Avery, emphasizes the importance of choosing a name that will frame your company's present and future identity. "Choosing a name for your business is a critical branding exercise," Shannon explains. "We should never underestimate the power of a name in capturing the attention of potential clients, giving form to our vision, and solidifying our brand."

With that in mind, there are several things to consider when choosing your business name. You need a name that is catchy, tells people who you are, and fits well into a web URL so people can find you (www.yourname.com).

For starters, you should ask yourself these questions: Who am I? What am I good at? What territory do I want to occupy? What feeling do I want to share with my customers? Strong and confident? Soft and comfortable? Edgy and creative?

Do a little research into your industry and see what kinds of names the stand-out businesses have. But, whatever you do, don't be a copycat. You don't want your name to be confused with other businesses, and you need to make sure you are legally permitted to use the name. An easy way to avoid headaches in the future is to check for registered business names and trademarks. Whether you are incorporating your business or not, you don't want to worry about your name (or any part of your name) being used for any aspect of another business. This includes products, services, or marketing slogans. If  your name is already being used by another business, don't use it.

Another consideration is the marketability of your name. You should choose a name that will last, and one that embodies your values and the characteristics that set you apart from your competition. Some businesses are so focused on establishing credibility in their field that they sacrifice a creative, edgy, attention-getting name. While considering your industry, you can still choose a name that is wholly unique to you and the culture of your company.

Harnessing your creative side can make an incredible difference in the marketability of your name, but you don't want to go out in left field. Your name still needs to be simple, easy to pronounce and spell, and it needs to be meaningful to your clients, not just to you. Using a descriptor at the end of the name can help clients figure out what the company actually does. If you will need to explain your name to anyone, then you should not use it.

Before we start getting comments about the importance of having "key words" in business names and "dot com" web addresses, let's clear up one thing. There is no denying the importance of key words when it comes to searchability, but there are many ways to drive traffic to your website without settling for a boring (or stupid!) name. And before long, there won't be many good "dot com" domains left, just like there were not enough 800 phone numbers to last. We don't even think about using 888 or 866 to dial toll free, because it doesn't matter! And that's how it will go with "dot com" web addresses. If you need to have a "dot net" address, no big deal.

In closing, let us share a couple of words of caution. These are pretty commonly known, but worth mentioning.

First, a mistake business owners make time and again is naming their business after themselves. There are positives to this, like your personal reputation. And if you have a name that is prestigious, recognizable, or an "action word," that could really be to your benefit. But there are negatives for using your name in your business, like your ability to sell a company with your name tied to it, or....well, your reputation. Another deterrent for naming your business after yourself is that it might give the impression that the company is a "one man show." Although that might be true in the beginning, you don't want to limit your growth.

And lastly, be careful not to paint yourself into a corner. For instance, if you name your sofa store, "Couch Potato," you're making it hard on yourself if you decide to add bedroom furniture to your inventory later on. Before you choose a name, consider how your business CAN grow. A great example of this is BestBuy, compared with CompUSA or RadioShack.

If you need help naming or re-branding your business, just give us a call. And remember, if you choose anything other than your own personal name, you will need to register it with the appropriate authorities to be in compliance with the law. This process is known as registering your “Doing Business As” (DBA) name, and we can help with that too!

Business Structure and Licensing

Deciding how to structure your business is a process that can ebb and flow as your situation changes and as your business grows. Just because you've already established an entity does not mean it is set in stone. If you are starting a new business, or if you think you might need to restructure, here are a few things to consider.

A sole proprietorship is the most basic type of business, and it is definitely a good way to start. You alone own the company, and you are responsible for all of the company's assets and liabilities. There is no legal separation between you and the company. No formal action needs to be taken when establishing a sole proprietorship, but like all businesses, you will need the appropriate licensing and permits.

It's relatively inexpensive and fairly simple to set up a sole proprietorship. Some advantages are that you have complete control over all aspects of your business, and the tax preparation is not usually very complicated. However, there are a few disadvantages to consider. Because there is no legal distinction between you and your business, you are personally liable for any debt or wrongful actions of the business, including the actions of your employees.

A partnership is a single business where two or more people share ownership, with each partner contributing to all areas of the business, including property, money, labor, and skill. Each partner, in return, shares the profits and losses of the business. Because partnerships involve more than one person, it’s important to discuss a wide variety of issues up front and develop a legal partnership agreement. Although partnership agreements are not required, they are strongly recommended.

Corporations (also know as a C-corp) are more complex and generally suggested for larger, established companies with multiple employees. It is an independent legal entity owned by shareholders. This means that the corporation itself, not the individuals who own shares of the company (shareholders), is held legally liable for the actions and debts the business incurs.

An S-corp is similar to a C-corp, but you are taxed only on a personal level. What makes the S-corp different from a traditional corporation (C-corp) is that profits and losses can pass through to the personal tax returns of the shareholders. So, the business itself is not taxed, but the owners of the company are taxed.

Another common business entity is a Limited Liability Company, also know as an LLC. An LLC is a sort of legal "mix" between a corporation and a sole proprietorship (or partnership). The LLC provides the limited liability features of a corporation with the the tax efficiency and operational flexibility you enjoy in a sole proprietorship or partnership.

The "owners" of an LLC are referred to as "members," and depending on the state, the members can consist of one person, two or more people, corporations or other LLCs. But, unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses pass through the business to each member. LLC members report profits and losses on their personal tax returns, just like sole proprietors and owners in partnerships.

This post is only meant to give you a brief explanation of the most common types of business entities. There are many legal and tax considerations to discuss before you determine how you would like to structure your business.

For over 14 years, Sonnenburg Consulting has been assisting clients with new business start-up, established business restructuring, and proper business registration. Our team of experienced consultants can help you determine what business structure best suits your needs, and we will help you in every aspect of registering your business to be in full compliance with national, state, and local laws.

Employer Quarterly Payroll Reports Due

This is a friendly reminder that 3rd Quarter 2013 Payroll Reports are due October 31, 2013. Federal law requires employers to withhold taxes from their employees' wages and tips for federal income tax, social security tax, and Medicare. Taxes withheld from your employees are credited toward the future payment of their tax liabilities.

Federal law also requires you to pay toward the employer's portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from your employees.

File your first Form 941 for the quarter in which you first paid wages that are subject to social security and Medicare taxes, or subject to federal income tax withholding. After you file your first Federal Form 941, you must file a return every quarter (every 3 months), even if you have no taxes to report. There are a few exceptions to this rule, such as special rules for some employers and for seasonal employees.

Your Quarterly Payroll Report is due by the last day of the month that follows the end of the quarter. For example, for the quarter of January, February, and March, the report is due on April 30. The report due this week is for the quarter of July, August, and September. If you are unsure whether you should file a quarterly report, or if you need help with your reports or any type of bookkeeping, please give us a call. We would love to assist you!

Meet Ted Sonnenburg

​TED H. SONNENBURG, PE, LEHS
Vice President
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Ted is a professional environmental engineer and works mainly as the Vice President of a nationwide environmental firm.  He has operated his own small businesses in the areas of specialty construction and environmental consulting. He has previously worked for the health department as an environmental enforcement officer and with the police department investigating environmental crimes. He assists Sonnenburg Consulting in the areas of compliance with federal and local environmental and safety regulations, risk assessment and business maintenance.

Meet Annette Calveri Sonnenburg

ANNETTE CALVERI SONNENBURG
President
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Annette started her career with a nationwide securities broker dealer.  She was licensed under Series 7 (Registered Representative), Series 24 (General Securities Principal), Series 53 (Municipal Securities Principal), Series 4 (Options Principal) and Series 27 (Financial and Operations Principal). She then went on to become the Chief Compliance Officer, Chief Financial Officer and Chief Operations Officer of a regional firm before returning to management at a national company.
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After providing all accounting functions, analyzing securities cases and consulting for clients of a local law firm, she decided to start her own business and provided business consulting, risk assessment and accounting services for law firms, construction companies, investment advisors, broker dealers, and extended her services to an action sports company, two large night clubs, and a movie production.

Annette is most appreciated by her clients for her strong work ethic, attention to detail, thorough analysis of all needs of the business and efficiency standards.