ACCOUNTING CHECKLIST FOR NEW BUSINESSES

File SS-4 for Employer Identification Number (can be done on line at www.irs.gov)

File necessary documents to legally set up your entity on line with the Secretary of State @ www.sos.state.co.us.

Open business checking account

File CR 100 with State of Colorado at https://secure.cdle.state.co.us/CR100/.  (This form lets them know if you will be collecting sales tax and when you will start payroll.)

Identify sources of capital

Determine how business relationship will work, profit sharing, etc. and have attorney draw legal documents to support agreement

SIGN AGREEMENT!!!

Prepare budget for at least two years

Purchase software for accounting system

Set up chart of accounts, accounts receivable, etc.

Deposit all revenue and pay all expenses from new checking account

Determine when to start paying salaries

Determine whether to use a payroll company or internally prepare payroll

Keep appropriate documentation for meals and entertainment

Keep appropriate automobile documentation