Money and Accounting Issues
Get paid
You’ll want to start taking credit cards soon after starting your catering business. Usually you need a “merchant account” to take credit cards. The merchant account is provided by a third party-they accept credit cards and deposit the funds into your bank account (after deducting fees for their service). This used to be the sort of thing your bank would do, but with the expansion of e-commerce, there has been a huge growth in the number of credit card processors.
Sitepoint has a good article comparing several “payment gateways,” although the article is really aimed at people conducting web commerce. Another article, “Merchant Accounts 101” can be found here. Talk to your local banker to find out more about merchant accounts. Reading these articles beforehand will arm you with a little knowledge and some new banker-type words to work into your conversation.
If you can’t work out something with your bank or having a full-fledged merchant account is too expensive at the beginning, you could opt for a Paypal for business account. That would enable you to take payments on your website. They’ve also recently added a feature that allows you to bill customers via email. When your customers receive your emailed invoice and pay it, the money is deposited into your Paypal account. Then you can transfer funds into your bank account or withdraw directly from Paypal using a debit card.
Track expenses (and profits!)
It’s essential to keep good accounting records. If you don’t already have one, find an accounting program that works for you. CNET has reviewed several software solutions for small business accounting. Accounting software reviews at PCMag.com is another good place to find software reviews and comparisons.
Keep the IRS happy
The U.S. Internal Revenue Service website offers resources specifically for small businesses and the self-employed.
Another resource you should really consider is the Ultimate Small Business Tax Reduction Guide. The package includes 3 tax-saving ebooks, 13 total bonuses), a 90-day guarantee, and a promise that you’ll save at least $2,000 on your business taxes
