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We do our month to month accounting in QuickBooks. Since we don’t have employees there’s really not that much we need during the year. Then at the end of the year we give the accountant our quickbook numbers and she does a quick calculation as to what our W2 amount will be. She does this to make sure we’ve paid in enough taxes through the year plus she can tell us how much we can add to the SEP to maximize our contributions. We make monthly tax payments. This number is based on the income we brought in the previous year. Then she does the actual taxes for us by April 15. Eventually we may go back to doing our own taxes but as long as we’re bringing in money through the S-corp I don’t see that happening
As far as salary goes we don’t have a real salary like you would at a job. In the past we’ve taken out a “salary” but that amount is just what we need to live on and is not based on the income that came in that month. Now that the houses are paid off and we have no other debt we just take out a minimal amount for the bills.
At the end of the year, our accountant calculates what our W2 number is based on the income that came into our business for that year. This number has no real bearing on what we take out for our living expenses. Since we’re an S-corp all the income from the business passes through to our personal income tax.
The SEP IRA is money our “employer” puts into the SEP IRA account. The amount of money you can contribute is based on the amount of money you declare as “income”. So for us we are an S-corp and we have W2 income that we declare. Then we can contribute up to 25% of that value into the SEP IRA. Our accountant just tells us how much we can contribute for the year. I would ask your accountant about using the SEP IRA. The money contributed to the SEP is tax deductible.
Since the SEP IRA money is considered employer contribution we can still fund our ROTH accounts. These are funded with employee money instead of employer money.
I’m sure your accountant could explain it better than I can.
Yeah we’re practically next door neighbors. We go through Luray/Woodstock whenever we go down to Tennessee (where my parents live) when we cut through to get to I81.
I think I’ve stopped at one of the thrift stores you guys go to. They were having a bag deal. I think it was $5/ bag but I didn’t have time to really look. I did find a mug outside for free though
We had been using a money manager for the last 10-12 years. He managed our SEP IRAs for us. He had our accounts spread over 10 different mutual funds. I never felt like I could figure out what/why we were investing in the various ones but I figured he knew. The last couple of years though I’d been wanting to move these accounts under Vanguard but was hesitant because I wasn’t sure I would be able to manage them. This summer we took the plunge and moved all of our SEP IRA money to SEP IRAs under Vanguard. So now we only have 3 accounts, all under Vanguard. My husband and I each have SEP IRAs, we each have ROTH IRAs and we have a joint non-retirement account. This is so much easier to manage and understand. Our money manager was very nice and it was hard to pull the plug but paying him 1.5%/year to manage our money just wasn’t worth it compared to Vanguard. We’ve been investing with Vanguard since 1999 so I was very familiar with how they worked. It was just making the leap to managing everything ourselves that was the tricky part.
Also within the Vanguard accounts we only use Vanguard Total Stock Mkt, Vanguard Total Bond Mkt, and Wellesley Balanced fund
Yeah I don’t believe buyers can see the SKU field when looking at the listing. Someone mentioned this field earlier saying they added their COGs, purchase date and storage location. That’s what I’ve been using it for as well.
Never mind. I realized I hadn’t added it to the customized fields.
Hi Ryanne
In the comments on the old site it would position you to the bottom of the comments when you went in to read the comments so that you saw the latest comments first. I’d read from the bottom to the top since most of the time I had already read the comments at the top. I’m not sure if that makes sense or if I just need to be used to scrolling to the bottom.
Thanks
Donna
