Start-Up Business- Case Study

Problem: A startup consulting firm is wrapping up its first year of business and as they prepare for their tax filing, they’re struggling to categorize their expenses and their income. They have records of expenses and income but neither have been tracked or organized. Additionally, the firm is unsure about its required paperwork as a new business. What tax forms or business licenses do they need, if any?  

Solution: Study the firm’s operations, review the available records (bank statements, credit card statements, receipts, tax filings, etc.). Using this information, categorize income and expenses for the year. Design an expense tracking system and schedule that is tailored to the business’s
needs and resources. Design a chart of accounts for the firm's bookkeeper to use going forward.