Lighthouse is organized, dependable, and reliable. They possess excellent communication and teaching skills. They have proved to be both willing and flexible and are always prepared to help out when needed. I highly recommend Lighthouse’s services and I am confident that they will prove to be a valuable asset to a business.

Erin Bertman
Office Manager
Allcare Therapy Services

JoAnn Busciglio
Owner
Aqua Adventures, LLC

Because of their professionalism, extensive product knowledge, accessibility, and attention to detail, Lighthouse deserves serious consideration as a potential accounting partner and I recommend them highly.

Steven Catapano,
Chief Operating Officer | Chief Financial Officer
Harbor Lights Financial Group, Inc.

Christopher Carr
President
Farotech

Form I-9 – Eligibility to Work in the United States

The I-9 confirms that your new employee is eligible to work in the United States.

Form SS-5 – The Employee’s Social Security Number

The W-2 form (a federal tax form issued by employers states how much an employee was paid during the year) requires your new employee’s name and Social Security Number. If your employee does not have a Social Security card, he or she can apply for it using the SS-5.

Form W-4 – Employee’s Withholding Allowance Certificate

The W-4 clarifies how much income tax to withhold from wages. All new employees must fill out this form and it should be effective as of each employee’s first pay period.

So your business is thriving and we are handling your payroll, but what about you, the owner? If your company is not incorporated, you may not need to be on payroll. Instead, you can take an owner’s draw. You see, money coming into your business is your income, and you will pay taxes on it at the end of the year. It may not make sense to pay taxes on it twice: once when you earn it through your company and once again when you pay yourself. This is a situation in which to talk to your accountant, and here are some things to remember…

All of the funds coming into your business are subject to federal, state, and local income taxes as well as Social Security and Medicare taxes. Your accountant will adjust your payroll and business expenses.

1. Schedule your draw like a payroll check. This is your business and you should pay yourself, so schedule your draw on a regular basis. If finances get tight, you as the business owner can always pass up your draw.
2. Your draw covers any personal expenses. We strongly recommend that you not purchase personal items like clothing or groceries from your business account. If you do purchase these items, they are a draw against the business by the owner.
3. If you are showing a significant profit in December you may take a bonus draw, but remember to leave enough money in the business for future expenses.

“I sat down with my accountant the other day…” Ka-Ching! That statement in itself is expensive. Now, I love accountants, I work with many accountants, and my own son is an accountant, but any conversation with an accountant will have the ring of money to it.  Unfortunately, many small business owners ask their accountants to do work that a bookkeeper could accomplish less expensively. In fact, your accountant may just take that project that you want him to accomplish and hand it over to me to do, then charge you his regular rate for being the middle man. A few guidelines will help you save money with your finances.

Use a bookkeeper when you need to…

 Enter regular expenses and deposits into your accounts.

1. Perform monthly account reconciliations.
2. Invoice clients or bill vendors.
3. Review profit and loss reports.

Use an accountant when you need to…

 Develop a long-term strategic financial plan including tax reduction plans.

1. Project a budget for growth.
2. Audit your books annually.
3. Prepare your taxes.
4. Plan major expenses and investments.

Michael Regina
President
Big Sky Enterprises

• QuickBooks Online
• QuickBooks for Mac
• QuickBooks Pro
• QuickBooks Premier
• Enterprise Solutions