New Business Start Up Expenses

Don't lose out on start up expenses! If you are a new business, be sure to enter any receipts that occurred prior to the opening of your business as part of your start up costs. Many small businesses start their Quickbooks file with the opening balance of their business checking account, but they lose out on some of the expenses that they paid out of their personal account. If this applies to you, then you can enter the receipts in the Owners Investment Equity account register. You can code each transaction to Start-Up Costs (an asset account - you may need to create) since these were costs before you opened your business. Then when its tax time, your CPA/tax preparer will be able to factor that in to the preparation of your business tax return since start up costs will be depreciated or amortized over a period of time as outlined by tax laws.