Bookkeeping for all Industry

BOOKKEEPING PROCESS – STEP-BY-STEP TASK LIST (FOR CLIENTS)

Frequency: Daily, Weekly, Monthly, Quarterly, Annual

1. CLIENT ONBOARDING (ONE-TIME SETUP)

1.1 Gather Client Information

Business details (EIN, address, industry)
Owner contact information
Accounting method (cash or accrual)
Chart of accounts (standard or customized)
Sales tax requirements
Payroll provider information
Reporting requirement

1.2 Request Access and Uploads

Invite client to QuickBooks Online
Get access to:
- Bank accounts
- Credit cards
- Payment processors
- Payroll systems

1.3 QuickBooks Online Setup

Customize chart of accounts
Set fiscal year and accounting method
Create recurring transactions
Customize invoice templates
Set up bank feeds

2. DAILY / WEEKLY TASKS

2.1 Import and Categorize Transactions

Go to Banking → Transactions
Review items under “For Review”
Match deposits to invoices or sales receipts
Match payments to bills
Create bank rules for recurring vendors
Attach receipts

2.2 Collect Receipts and Documents

Review uploaded receipts
Push documents into QuickBooks Online
Organize documents in Google Drive
Request missing documents from client

2.3 Monitor Cash Flow

Review cash on hand
Flag unusual or duplicate transactions
Notify client of any urgent concerns

3. MONTHLY TASKS

3.1 Reconcile All Accounts

Reconcile all statements:

Bank accounts
Credit cards
Loans and lines of credit
Payment processors
Payroll clearing accounts

3.2 Record Bills and Expenses

Enter bills received
Categorize vendor expenses
Ensure bill payments match open balances
Update accounts payable aging

3.3 Record Customer Sales and Payments

Review open invoices
Apply customer payments
Match deposits to processor reports
Send invoice reminders (if included in your service)

3.4 Payroll Review

Confirm payroll runs
Post payroll journal entries
Verify payroll tax payments
File payroll reports

3.5 Review Financial Statements

Profit and Loss
Balance Sheet
Cash Flow Statement
Month-over-month comparison
Identify unusual or incorrect balances

3.6 Communicate With Client

Send monthly package:

Financial statements
Questions or clarifications
Accounts receivable aging
Accounts payable aging
Cash flow notes
Tax reminders

4. QUARTERLY TASKS

4.1 Sales Tax Filing

Verify taxable sales
Reconcile with jurisdiction requirements
File and pay sales tax
Save confirmation

4.2 Payroll Tax Filings

File quarterly payroll forms
Save all filings in Google Drive

4.3 Review Estimated Tax Payments

Prepare reports for CPA
Notify client of estimated payments

4.4 Review Chart of Accounts

Clean up unused accounts
Add new accounts as needed

5. YEAR-END TASKS

5.1 Cleanup and Adjustments

Reconcile all accounts to year-end
Ensure all expenses are entered
Review undeposited funds
Review clearing accounts
Adjust inventory
Reclassify incorrect transactions

5.2 Prepare Year-End Reports

Final Profit and Loss
Final Balance Sheet
General Ledger
Trial Balance
Provide to CPA

5.3 1099 Preparation

Review vendors
Collect missing W-9s
Generate 1099s
File and distribute forms
Save all copies

5.4 Archive and Backup Data

Export reports
Organize documents by year and month
Update recurring templates for the new year

Payroll Service

PAYROLL PROCESSING – STEP-BY-STEP TASK LIST (FOR CLIENTS)

Tools referenced: QuickBooks Online Payroll, Gusto, ADP, Paychex, Google Drive, and time-tracking apps.

1. CLIENT PAYROLL ONBOARDING (ONE-TIME SETUP)

1.1 Gather Required Information

Business legal name, EIN, address
Payroll frequency (weekly, biweekly, semimonthly, monthly)
Pay schedules
Employee information: W-4, I-9, direct deposit forms
Contractor information: W-9
Benefits details: health insurance, retirement plans, garnishments
PTO policies
State unemployment account details

1.2 Set Up Payroll System

Add company information to payroll software
Enter employees and contractors
Set pay rates, salary amounts, overtime rules
Enter benefits deductions and employer contributions
Add tax jurisdictions
Connect bank account for payroll funding

1.3 Document Storage Setup

Create payroll folder in Google Drive
Store employee files, signed forms, and payroll reports
Secure folder access with permissions

2. PAYROLL PREPARATION (PER PAY PERIOD)

2.1 Collect and Verify Hours Worked

Pull timesheets from time-tracking platform
Verify clock-ins/out
Check overtime accuracy
Review PTO, sick time, holiday hours taken
Confirm approvals from client or manager

2.2 Review Employee Status Changes

New hires, terminations, pay rate changes
Benefit changes or new deductions
Address updates
Check whether any changes require a tax update

2.3 Verify Earnings and Deductions

Regular wages
Overtime
Bonuses, commissions, stipends
Benefit deductions
Garnishments
Reimbursements

3. PROCESS PAYROLL (PER PAY PERIOD)

3.1 Run Payroll Calculation

Input hours or approve imported hours
Review gross wages
Confirm tax withholdings
Confirm employer taxes
Verify net pay amounts

3.2 Approve and Submit Payroll

Confirm payroll totals
Submit payroll for direct deposits
Schedule paper checks if applicable
Verify pay date

3.3 Generate Payroll Reports

Payroll summary
Payroll register
Deductions report
Employer tax liability report
Save reports in Google Drive

4. POST-PAYROLL TASKS (PER PAY PERIOD)

4.1 Record Payroll in Accounting Software

Sync payroll to QuickBooks Online or
Manually enter payroll journal entries
Verify wages, employer taxes, and benefits post accurately

4.2 Confirm Tax Payments

Depending on system:

In Gusto/QBO Payroll: taxes are auto-paid
In ADP/other: confirm scheduled tax deposits
Verify state and federal taxes will process before deadlines

4.3 Communicate With Client

Notify client payroll was processed
Send summary of hours, total payroll cost, and any notes
Confirm next payroll date

5. MONTHLY PAYROLL TASKS

5.1 Review Monthly Payroll Reports

Payroll summary
Employee earnings
Benefits deductions
Employer tax liability
PTO balances

5.2 Reconcile Payroll Accounts

Reconcile payroll bank account
Reconcile payroll liability accounts
Review accuracy of benefit payments
Confirm voluntary deductions match invoices from carriers

5.3 Submit Benefit Payments

Health insurance premiums
Retirement plan contributions
Garnishment payments
Save confirmations in Google Drive

6. QUARTERLY PAYROLL TASKS

6.1 File Quarterly Payroll Tax Forms

Federal Form 941
State withholding returns
State unemployment returns
Local taxes (if applicable)
Save copies in Google Drive

6.2 Reconcile Quarterly Tax Payments

Match payroll tax deposits to software reports
Verify no late or missed deposits

6.3 Provide Reports to Client or CPA

Quarterly payroll summary
Liability reports
Employee wage detail

7. YEAR-END PAYROLL TASKS

7.1 Prepare and File W-2s and W-3

Verify employee names, SSNs, and addresses
Reconcile total wages to payroll reports
File W-2s with SSA
Distribute W-2s to employees

7.2 Prepare and File 1099s for Contractors

Verify contractor information
Confirm total payments exceed the filing threshold
File and distribute 1099-NEC

7.3 File Annual Payroll Tax Forms

Federal Form 940 (FUTA)
State annual reconciliation forms
Local annual filings (if applicable)

7.4 Year-End Reconciliation

Reconcile total wages to general ledger
Reconcile payroll liability accounts
Confirm all taxes and benefits were paid
Review PTO balances and carryover policies

7.5 Archive Payroll Records

Save all payroll reports for the year
Organize by employee and month
Prepare payroll calendar for new year

Business Formation

BUSINESS FORMATION PROCESS – STEP BY STEP

Applies to Washington State, other states, federal IRS steps, and nonprofit setup.

1. DETERMINE BUSINESS STRUCTURE

Sole proprietorship
Partnership
LLC
Corporation
S-Corporation (via IRS election)
Nonprofit organization

2. PREPARATION BEFORE FORMATION

Decide on business name
Check name availability with state’s business registry
Verify trademark availability (USPTO)
Determine ownership and management structure
Prepare operating agreement (LLC) or bylaws (corporation or nonprofit)
Identify registered agent

3. FORMING A BUSINESS IN WASHINGTON STATE

3.1 Name Search

Search business name availability using Washington Secretary of State “Corporations and Charities” database.
Reserve name if needed.

3.2 Form the Business Entity

For LLC or Corporation: File Certificate of Formation (LLC) or Articles of Incorporation (Corporation) with Washington Secretary of State.
For nonprofit: File Articles of Incorporation for Nonprofit.
Keep confirmation and stamped copies.

3.3 Create a Business License

Register with Washington Department of Revenue through the Business Licensing Service (BLS).
Obtain Unified Business Identifier (UBI).
Add endorsements such as city business licenses, specialty licenses, or trade endorsements.

3.4 Register for Taxes

Set up account for Washington taxes including business and occupation (B&O) tax.
Register with Employment Security Department for unemployment.
Register with Department of Labor & Industries for workers’ compensation.

3.5 Additional Washington Requirements

File Initial Report (for corporations) with Secretary of State.
Maintain annual report with the state.
Set up required state-level permits based on business activity.

4. FORMING A BUSINESS IN OTHER STATES (GENERAL PROCESS)

4.1 Name Search

Search business name in the state’s Secretary of State or Corporations Division database.

4.2 File Formation Documents

LLC: Articles of Organization.
Corporation: Articles of Incorporation.
Nonprofit: Nonprofit Articles of Incorporation.
Pay state filing fee.
Receive approved documents.

4.3 Appoint Registered Agent

Ensure agent meets state requirements.
Maintain annual agent records.

4.4 State Tax Registration

4.5 Local Licensing

File required city, county, or industry-specific licenses.

4.6 Annual/Periodic Filings

File annual reports or statements of information.

5. FEDERAL EIN APPLICATION (IRS)

5.1 Prepare Information

Responsible party name and SSN or ITIN
Business legal name
Business address
Type of entity
Reason for applying

5.2 Apply for EIN

Apply online via IRS EIN Application (fastest).
Alternative: Fax or mail Form SS-4.
Save EIN confirmation letter (CP 575).

5.3 Use EIN for:

Banking
Hiring employees
Tax filings
Business license applications

6. S-CORPORATION ELECTION (IRS)

6.1 Requirements Check

Must be a domestic corporation or LLC eligible to be taxed as corporation.
No more than 100 shareholders.
Only allowable shareholders (individuals, estates, certain trusts).
One class of stock.

6.2 File Form 2553

File Form 2553, Election by a Small Business Corporation.
Must be filed:
- Within 2 months and 15 days of formation, or
- Within 2 months and 15 days of the beginning of the tax year the election is to take effect.

6.3 Keep IRS Acceptance Letter

Store IRS acceptance notice for tax records.

7. NONPROFIT FORMATION (FEDERAL + STATE)

7.1 State-Level Formation

Draft Nonprofit Articles of Incorporation with IRS-required language on purpose and dissolution.
File formation documents with Secretary of State.
Draft Bylaws.
Hold organizational meeting.
Appoint board of directors.

7.2 Obtain EIN

Apply for EIN as a nonprofit (same process as LLC but choose nonprofit option).

7.3 Apply for Federal Tax-Exempt Status

501(c)(3): File Form 1023 or Form 1023-EZ (if eligible).
Other exemptions: File Form 1024 or 1024-A.
Submit required attachments: financials, activities explanation, organizing documents.

7.4 After Federal Approval

Register with state charity division (such as Washington Charities Program).
Begin annual IRS filings (Form 990 series).
Maintain corporate records and board minutes.

8. POST-FORMATION STEPS (ALL STATES)

8.1 Open Business Bank Accounts

Provide EIN
Provide formation documents
Provide operating agreement or bylaws

8.2 Set Up Accounting

Establish bookkeeping system
Track startup expenses
Set up payroll if needed

8.3 Obtain Insurance

General liability
Workers' compensation
Professional liability (if applicable)

8.4 Maintain Compliance

File annual reports with the state
Renew local licenses
Keep corporate records up to date

E. SMITH, EA, ACCOUNTING, LLC | dba, E. SMITH ACCOUNTING SERVICES

A: 208 S Main Street, Omak, WA, USA 98841

L: 509-258-5101 | C: 509-322-3877 | Fax# 509-553-6064

E: emsmith@cad-accounting.com | M: PO BOX 96, Riverside, WA, 98849