Accounting, Human Resources, Payroll Overview for Start Up Businesses in California

This guide assumes you know 0% about all the numerous laws, best practices, etc., about running a business.  I obviously can’t cover everything, but I can at least bring to your attention some of the most important aspects to minimize your liability (AKA the risk of you getting sued).

 

Accounting

Payroll

Human Resources

– Break Even Analysis

    — Fixed Expenses

    — Variable Expenses

    — Income Sources (variable vs. fixed)

    — Break Even Point

FIRST OFF

Do you have:

    – Need an Federal EIN http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online

 

    – Need a State Employer ID

https://www.ftb.ca.gov/businesses/faq/701.shtml

ACCOUNTING

I’ll actually break accounting up into multiple parts:

 

– Accounts Payable

    – Credit Cards

    – Checks

 

– Accounts Receivable

    – Timeframe

    – Keep Track of Accounts and Review

 

– Bookkeeping

    – Quickbooks

    – Download Transactions Online

    – CATEGORIZE!!!

    – Look at Reports to adjust your “break even” analysis to be more accurate

PAYROLL

– In house, or Outsource (http://www.amesoft.com/)

    – Payroll Taxes

– Hourly / Salary

 

– Overtime:

    http://www.dir.ca.gov/dlse/faq_overtime.htm

 

    – Meal periods:

        http://www.dir.ca.gov/dlse/faq_mealperiods.htm

 

    – Paid Break

 

    – Rest Periods:

        http://www.dir.ca.gov/dlse/faq_restperiods.htm

 

– Time management software for clock in and clock out times

    – May come with payroll company

    – TimeTrex (open source)

    – Numerous other options

 

– WHY do this?

 

– Unemployment:

http://jeffersonkim.com/2012/09/20/unemployment-from-a-business-owners-perspective-in-california/

 

http://www.edd.ca.gov/UIBDG/default.htm

 

http://www.edd.ca.gov/pdf_pub_ctr/de2088c.pdf

 

Write Ups and notifications.

 

DOCUMENT EVERYTHING!!!

HUMAN RESOURCES

 

– Protected Classes

http://www.nolo.com/legal-encyclopedia/california-employment-discrimination-31690.html

– Applicable to Hiring, Firing, EVERYTHING

 

– At Will Employment

    http://en.wikipedia.org/wiki/At-will_employment

 

– Employee Handbook not 100% necessary at this stage

 

– New Hire Packet

    W-4

    I-9

    Lunch & Break Notice

    MPN Notifications

    Healthcare Notifications (http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf)