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Who Do You Pay First?Monday 08/06/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Who Do You Pay First?

 

It’s always important to have a set of bill priorities when you’re running short on cash, however there’s often times when people fail to realize what seems to be most important than not.  Above all else, you have to remember that these are not hard and fast rules, however it’s important to keep them when cash flow becomes an issue at any time.

 

Payroll Taxes

This is an area that isn’t to be trifled with, because the interests and penalties alone can be extraordinarily bad and because you’re dealing with other peoples’ money, i.e. your employees’ tax share, it is always a priority to be aware of.

 

Sales Tax

These taxes are not used to pay off your other bills but rather used in a holding tank that should not be touched but available and paid on time.  In the State of Texas, failure to pay on time can result in at least a 10% penalty alone on the sales tax you’re paying, not to mention interest, depending upon the length of time that you fail to file.


Income Tax
This third standard government tax is part of everyone’s daily life, as is death, and with everything else that is government-related, it will be difficult to determine whether or not you could even get out of it should you file for bankruptcy.  As well, the government, both state and federal, can and will freeze bank accounts and other assets while attempting to collect payment.

 

Utilities
Can you really work with the lights turned off or the water not running in the shop for your machinery and equipment?  If the telephone bill hasn’t been paid, then you definitely need to rethink if going out to eat is more of a priority than not having a way for your customers to contact you to give you their business.

 

Employment Wages
Not everyone can handle missing a paycheck, and if you’re not ready to lose a good portion of your staff, then you need to either consider restructuring or consider lay-offs of non-essential personnel.  You cannot wait until you need the money – you need to make sure that your plan is solid and straight-forward, and it makes sense.  Often times other companies are willing to work with you, however employees are not so forgiving.

 

 

 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

Previously broadcast from:
SKL @ BlogTalkRadio.com 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

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