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Accountants at Raleigh event urge small businesses to use accounting software, track 1099s and plan estimated taxes
Summary
Eisner Amper presenters told business owners to separate business and personal finances, use appropriate accounting tools, comply with 1099 and sales‑tax rules and plan estimated tax payments to avoid penalties.
Julie Dillon, a CPA at Eisner Amper, told the City of Raleigh session that one of the most common problems small businesses face is commingling personal and business finances. “Make sure that you set up a business bank account,” she said. “Get a separate debit card and a separate credit card for business.”
Dillon recommended QuickBooks or other accounting packages and noted free options for very small operations. She advised business owners to reconcile bank and loan accounts monthly, maintain clear invoicing and collections processes, and keep financial statements that banks and investors can review.
On 1099s, Dillon said businesses must issue Form 1099‑NEC (formerly 1099‑MISC) to independent contractors paid $600 or more in a year for services (not merchandise), and must distinguish contractors from employees for tax and payroll purposes. She also warned that misclassifying workers can trigger audits or penalties.
On sales tax she told attendees to check whether their services are taxable in North Carolina and to determine whether they must collect and remit tax. Dillon noted common pitfalls in construction contracting: payments for capital improvements may be treated differently from repair and maintenance for sales‑tax purposes.
The session covered estimated tax payments: owners of flow‑through entities (sole proprietorships, partnerships, S corps) often need to make quarterly estimated payments; failing to meet “safe harbor” tests (e.g., pay ~100%–110% of prior year tax or 90% of current tax) can result in penalties and interest. Dillon recommended building several months of cash reserves and hiring an accountant who can prepare timely estimates.
Ending: The accounting presenters encouraged attendees to adopt basic bookkeeping practices, choose accounting software that fits their scale, issue required 1099s, register and remit sales tax when necessary, and talk to an advisor about quarterly estimated‑tax planning.
